# In the matter of Aveena Cold Storage Pvt. Ltd.

> NCLT judgment dated 2025-02-07. Citation: TCN-2025-NCLT-00515. The financial creditor, M/s Brilliant Metals Pvt Ltd, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 7 Feb 2025
- **Citation:** TCN-2025-NCLT-00515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aveena-cold-storage-pvt-ltd-4aab3745

## Summary

### Background

The financial creditor, M/s Brilliant Metals Pvt Ltd, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Aveena Cold Storage Pvt. Ltd. (Corporate Debtor) due to its failure to honor obligations as a corporate guarantor for loans availed by M/s Avdhesh Construction and Impex Ltd (Principal Borrower). The application was based on an arbitral award holding the Corporate Debtor jointly and severally liable for outstanding amounts.

## Facts

M/s Brilliant Metals Pvt Ltd (Applicant/Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Aveena Cold Storage Pvt. Ltd. (Corporate Debtor). The Corporate Debtor acted as a corporate guarantor for loans availed by M/s Avdhesh Construction and Impex Ltd (Principal Borrower). The Corporate Debtor was incorporated on September 11, 2014, under the Companies Act, 2013, and its registered office in South Delhi established the Bench's jurisdiction. The Applicant, engaged in manufacturing and supplying equipment for milk processing plants, was approached by Mr. Avadhesh Mittal, CFO of the Principal Borrower, with a proposal to set up milk plants. On May 15,

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## Issues and analysis

### Issue 1: Whether a default can be deemed to have occurred on the date of the arbitral award itself for the …

**Ratio:** A default for the purpose of initiating CIRP under Section 7 of the IBC, based on an

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**Reasoning:** The Adjudicating Authority reasoned that a default can only be deemed to have occurred

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**Interpretation:** The court interpreted **Section 36** of the Arbitration and Conciliation Act,

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**Application:** Applying this interpretation, the Adjudicating Authority found that the

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** M/s Brilliant…
- **Respondents:** M/s Aveena Cold…
- **Advocates:** For the Applicant:…; Raghu Vas…; +1 more

## Timeline

- **September 11, 2014 — Corporate Debtor…**: M/s Aveena Cold Storage Pvt. Ltd. (Corporate Debtor) was incorporated under the Companies…
- **May 15, 2017 — Offer Letter…**: M/s Brilliant Metals Pvt Ltd (Applicant) issued an offer letter to Mr. Avadhesh Mittal,…

## 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)

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