# In the matter of Spencer Distilleries & Breweries Pvt. Ltd.

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00686. The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spencer-distilleries-breweries-pvt-ltd-95874fa0

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, by S.R.C. Realtors Pvt. Ltd., Amar Nath Tekriwal, and Nevaan Agarbatti Pvt. Ltd. against Spencer Distilleries & Breweries Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditors claimed that the corporate debtor defaulted on a total amount of Rs. 1,70,00,000/- along with interest, with the date of default claimed as 05.03.2020. The petitioners had extended loans to the corporate debtor in the form of investments, proposing to allot equity shares in return. However, the corporate debtor allegedly failed to allot the shares or repay the borrowed amount.

## Facts

S.R.C. Realtors Pvt. Ltd., Amar Nath Tekriwal, and Nevaan Agarbatti Pvt. Ltd. filed a joint petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Spencer Distilleries & Breweries Pvt. Ltd., seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petitioners claimed that the corporate debtor defaulted on a total amount of Rs. 1,70,00,000/- plus interest, with the date of default being 05.03.2020. The petitioners alleged that they had extended loans to the corporate debtor in the form of investments, with a proposal to allot equity shares in return. Specifically, S.R.C. Realtors Pvt. Ltd. transferred Rs. 50,00,000 on 23.08.2017, Amar Nath Tekriwal transferred Rs. 1,00,00,000 on 24.04.2017, and Nevaan Agarbatti Pvt. Ltd.

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## Issues and analysis

### Issue 1: Whether the application/petition under Section 7 of the I&B Code filed by the Financial …

**Ratio:** To admit an application under Section 7 of the I&B Code, the Adjudicating Authority

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**Reasoning:** The Adjudicating Authority found that the financial statements of the petitioners did not

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**Interpretation:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP

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**Application:** In this case, the Adjudicating Authority found that the petitioners' financial

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** S.R.C. REALTORS…
- **Respondents:** SPENCER DISTILLERI…

## Timeline

- **2017-08-23 — Investment by S.R.C.…**: S.R.C. Realtors Pvt. Ltd. transferred Rs. 50,00,000 against allotment of 50,000 equity…
- **2017-04-24 — Investment by Amarnath…**: Amarnath Tekriwal transferred Rs. 1,00,00,000…

## 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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