# In the matter of SREI Equipment Finance Limited Vs. Rajeev Anand & Ors. Civil Appeal No. 1911 of 2020  and 3112 of 2020

> SC judgment dated 2020-09-08. Citation: TCN-2020-SC-00035. The case involves a civil appeal against an order of the NCLAT, which had set aside an order of the…

- **Court:** SC
- **Order date:** 8 Sept 2020
- **Citation:** TCN-2020-SC-00035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/srei-equipment-finance-limited-vs-rajeev-anand-ors-civil-appeal-no-1911-of-2020-a7f7a993

## Summary

### Background

The case involves a civil appeal against an order of the NCLAT, which had set aside an order of the NCLT admitting a Section 7 application under the Insolvency and Bankruptcy Code, 2016. The appellant, SREI Equipment Finance Limited, had filed the application before the NCLT based on a loan agreement with the corporate debtor. The NCLT admitted the application, but the NCLAT reversed this decision, leading to the current appeal before the Supreme Court. The initial loan was restructured into two loans in 2016. The corporate debtor claimed to have repaid a significant portion of the debt, leading to disputes regarding the outstanding amount.

## Facts

In 2008, a loan was given, which was later restructured into two loans amounting to Rs.18.86 crores and Rs.16.80 crores, respectively, through agreements dated 01.04.2016 and 24.06.2016. An application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was filed by SREI Equipment Finance Limited before the NCLT on 16.03.2017. The corporate debtor filed a counter affidavit stating that Rs.35.66 crores was due but the Section 7 application was premature. The appellant withdrew the first application on 30.05.2017. A fresh application was filed on 04.08.2017, claiming Rs.21.41 crores was outstanding. The corporate debtor claimed to have repaid Rs.65.60 crores since 2008. The NCLT admitted the application, appointed a Resolution Professional, and formed a

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## Issues and analysis

### Issue 1: Whether the NCLAT was correct in setting aside the NCLT order admitting the Section 7 application …

**Ratio:** The principle is that adjudicating authorities should consider all relevant evidence and

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**Reasoning:** The Supreme Court reasoned that the NCLAT erred in disregarding documents and admissions

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**Interpretation:** This involves interpreting the scope and admissibility of evidence in

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**Application:** The Supreme Court applied this principle to the facts by finding that the NCLAT

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## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…; +1 more
- **Appellants:** SREI Equipment…
- **Respondents:** RAJEEV…

## Timeline

- **2017-03-16 — Section 7 Application…**: SREI Equipment Finance Limited filed an application under Section 7 of the Insolvency and…
- **2017-05-15 — Counter Affida…**: The corporate debtor filed a counter affidavit stating that Rs.35.66 crores was due but…

## 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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