# In the matter of Avarsekar Realty Private Limited

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00800. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00800
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avarsekar-realty-private-limited-6a33e62b

## Summary

### Background

The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by SREI Equipment Finance Limited, the Financial Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Avarsekar Realty Private Limited, the Corporate Debtor. The basis for the petition was the Corporate Debtor's default in repaying a loan of INR 616,37,08,329/- as of 31.07.2023.

## Facts

SREI Equipment Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Avarsekar Realty Private Limited, the Corporate Debtor. The Financial Creditor's administrator, Rajneesh Sharma, had executed a Power of Attorney in favor of Mr. Pallab Bose to initiate recovery actions. The Corporate Debtor defaulted on a loan of INR 616,37,08,329/- as of 31.07.2023. The loan agreement, No. 149328, was dated 22nd December 2017, for Rs. 200 Crores, with a tenure of 36 months and a 6-month moratorium. The interest rate was 0.01% per annum with a Yield to Maturity at 11%. A supplementary loan agreement was entered on 31st December 2019. The

…

## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The court found that the Financial Creditor had provided sufficient evidence, including

…

**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

…

**Application:** The court applied Section 7 to the facts, finding that the Financial Creditor

…

## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** SREI Equipment…
- **Respondents:** Avarsekar Realty…

## Timeline

- **2017-12-22 — Loan Agre…**: Loan Agreement No. 149328 was…
- **2019-12-31 — Supplementary Loan…**: A supplementary loan agreement was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avarsekar-realty-private-limited-6a33e62b