# In the matter of BRS Ventures Investments Ltd. vs. SREI Infrastructure Finance Ltd. & Anr.

> SC judgment dated 2024-07-23. Citation: TCN-2024-SC-00051. The case involves a civil appeal regarding the maintainability of a Section 7 application under the…

- **Court:** SC
- **Order date:** 23 Jul 2024
- **Citation:** TCN-2024-SC-00051
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/brs-ventures-investments-ltd-vs-srei-infrastructure-finance-ltd-anr-94e69485

## Summary

### Background

The case involves a civil appeal regarding the maintainability of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) against a corporate debtor when a Corporate Insolvency Resolution Process (CIRP) has already taken place against the corporate guarantor for the same debt, and the financial creditor has accepted an amount in full and final settlement of its dues. The 1st respondent, SREI Infrastructure Finance Ltd., granted a loan of Rs. 100 crores to the 2nd respondent, Gujarat Hydrocarbon and Power SEZ Limited (corporate debtor), secured by a corporate guarantee from Assam Company India Limited (ACIL). When the corporate debtor defaulted, the financial creditor invoked the guarantee and initiated CIRP against ACIL. The appellant, BRS Ventures

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## Facts

In 2011, SREI Infrastructure Finance Ltd. (1st respondent) granted a loan of Rs. 100 crores to Gujarat Hydrocarbon and Power SEZ Limited (2nd respondent), a subsidiary of Assam Company India Limited (ACIL). The loan was secured by a mortgage of the corporate debtor's leasehold land, a pledge of shares, and a corporate guarantee from ACIL. In January 2011, ACIL furnished a corporate guarantee. After the corporate debtor defaulted, SREI invoked the corporate guarantee and filed an application under Section 7 of the IBC against ACIL. The adjudicating authority admitted the application in October 2017, commencing CIRP against ACIL. BRS Ventures Investments Ltd. (appellant) became the successful resolution applicant for ACIL and paid Rs. 38.87 crores to SREI as per the

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## Issues and analysis

### Issue 1: Whether the application under Section …

**Ratio:** The court did not seriously consider the issue of limitation in this appeal, as the

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**Reasoning:** The NCLAT rendered findings on both issues in favor of the respondents, and the appellant

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**Interpretation:** The issue of limitation was not a

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**Application:** The court did not delve into the specifics of the limitation period or its

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## Parties

- **Judges:** ABHAY S…; PANKAJ M…
- **Appellants:** BRS Ventures…
- **Respondents:** Gujarat Hydrocarbo…; Srei Infrastructur…

## Timeline

- **2011-01-05 — Loan Agre…**: SREI Infrastructure Finance Ltd. granted a loan of Rs. 100 crores to Gujarat Hydrocarbon…
- **2011-01-01 — Corporate Gu…**: Assam Company India Limited (ACIL)…

## 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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