# In the matter of Avyukta Dairy Products Pvt. Ltd.

> NCLT judgment dated 2025-02-07. Citation: TCN-2025-NCLT-00514. Brilliant Metals Pvt Ltd, the applicant and financial creditor, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 7 Feb 2025
- **Citation:** TCN-2025-NCLT-00514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avyukta-dairy-products-pvt-ltd-40f757ba

## Summary

### Background

Brilliant Metals Pvt Ltd, the applicant and financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avyukta Dairy Products Pvt. Ltd, the corporate debtor and guarantor. The application stems from a default on repayment obligations by Avdhesh Construction and Impex Ltd, the principal borrower, for whom Avyukta Dairy Products Pvt. Ltd. acted as a corporate guarantor. The applicant issued a demand notice on 15.09.2023, and a final demand notice on 10.10.2023, but the corporate debtor failed to honor its commitments. An arbitral tribunal awarded Rs. 2,46,48,957/- along with interest and costs to the applicant on 02.07.2024, but the corporate debtor did not satisfy

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## Facts

Brilliant Metals Pvt Ltd (Applicant) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avyukta Dairy Products Pvt. Ltd (Corporate Debtor). Avyukta Dairy Products Pvt. Ltd. acted as a corporate guarantor for loans availed by Avdhesh Construction and Impex Ltd (Principal Borrower). The Corporate Debtor was incorporated on 23.09.2016. The Applicant issued an offer letter to Mr. Avdhesh Mittal on 15.05.2017, and a work order was issued to the Corporate Debtor on 07.07.2017. Mr. Mittal sought financial accommodation for the Principal Borrower on 01.04.2019, and the existing guarantees were extended. The Principal Borrower defaulted on its repayment obligations, leading the

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## Issues and analysis

### Issue 1: Whether the default in payment pursuant to an arbitral award dated 02.07.2024 can be said to have …

**Ratio:** An arbitral award attains finality only upon the lapse of the statutory period prescribed

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**Reasoning:** The Adjudicating Authority reasoned that where no time limit is prescribed for compliance

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**Interpretation:** The interpretation of Section 34 of the Arbitration and Conciliation Act, 1996,

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**Application:** In this case, the Adjudicating Authority found that the present application was

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** M/s Brilliant…
- **Respondents:** Avyukta Dairy…; M/s Avyukta Dairy…
- **Advocates:** Abhishek…; Raghu Vas…

## Timeline

- **2016-09-23 — Incorporation of…**: Avyukta Dairy Products Pvt. Ltd. was…
- **2017-05-15 — Offer Letter…**: The applicant issued an offer letter to Mr.…

## 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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