# In the matte of AJS Impex Private Limited CP (IB) 93-MB-2022

> NCLT judgment dated 2022-07-15. Citation: TCN-2022-NCLT-01701. The case involves a petition filed by Archisha Steels Private Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 15 Jul 2022
- **Citation:** TCN-2022-NCLT-01701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-the-matte-of-ajs-impex-private-limited-cp-ib-93-mb-2022-90376b55

## Summary

### Background

The case involves a petition filed by Archisha Steels Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against AJS Impex Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on a loan agreement. The Corporate Debtor had approached the Financial Creditor for the supply of Hot Rolled Coil & Sheets. The Corporate Debtor acknowledged its inability to pay the outstanding amount.

## Facts

Archisha Steels Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AJS Impex Private Limited (Corporate Debtor). The Corporate Debtor had approached the Financial Creditor for the supply of Hot Rolled Coil & Sheets. The total amount of debt granted towards principal was Rs.7,71,04,962/-, and the interest due and outstanding as of 30.11.2021 was Rs.84,79,197/-, making the total liability Rs.85,584,159. The date of default as per the loan agreement was 30.06.2021. The Corporate Debtor, in a letter dated 02.12.2020, expressed its inability to pay the entire amount and requested the Financial Creditor to treat the balance amount as an

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority considered the submissions and documents presented by the

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

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**Application:** The Adjudicating Authority found that the Financial Creditor had met the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Archisha Steels…
- **Respondents:** AJS Impex Private…

## Timeline

- **2020-12-02 — Corporate Debtor's…**: The Corporate Debtor approached the Financial Creditor and expressed its inability to pay…
- **2020-12-30 — Loan Agre…**: Loan agreement executed between the…

## 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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