# In the matter of PTC India Financial Services Ltd. Vs. Mr. Venkateswarlu Kari & Ors. CA(AT) (Insolvency) No. 450-2018

> NCLAT judgment dated 2019-06-20. Citation: TCN-2019-NCLAT-00498. The case involves a corporate insolvency resolution process initiated against NSL Nagapatnam…

- **Court:** NCLAT
- **Order date:** 20 Jun 2019
- **Citation:** TCN-2019-NCLAT-00498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ptc-india-financial-services-ltd-vs-mr-venkateswarlu-kari-ors-ca-97ece088

## Summary

### Background

The case involves a corporate insolvency resolution process initiated against NSL Nagapatnam Power and Infratech Ltd. (NPIL), the Corporate Debtor. PTC India Financial Services Ltd. (PFS), the Appellant, filed a claim as a financial creditor before the Resolution Professional, which was rejected. The Appellant then moved before the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, which also rejected the application. The appeal arises out of the order dated 6th July, 2018, passed by the NCLT Hyderabad.

## Facts

PTC India Financial Services Ltd. (PFS) extended a 'Bridge Loan' of Rs. 125 Crores to NSL Nagapatnam Power and Infratech Ltd. (NPIL), the Corporate Debtor, for setting up a thermal power project. This loan was secured by a 'Deed of Pledge' of shares owned by Mandava Holdings Private Limited (MHPL) in NSL Energy Ventures Private Limited (NEVPL). NPIL defaulted on its payment obligations under the 'Bridge Loan Agreement' in June 2016. PFS issued a notice to NPIL and its promoters in December 2017. PFS filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. NPIL filed an application under Section 10 of the I&B Code, which was admitted on January 18, 2018, and a moratorium was declared. Mr. Venkateswarlu Kari was appointed as the Interim

…

## Issues and analysis

### Issue 1: Whether the Appellant can be held to be a ‘Financial Creditor', who claimed to be a ‘Financial …

**Ratio:** The ratio is based on the interpretation of the 'Bridge Loan Agreement' and the 'Deed of

…

**Reasoning:** The court reasoned that the Appellant, by intimating the transfer of shares and

…

**Interpretation:** The interpretation centers on the legal implications of invoking the pledge and

…

**Application:** The court applied the ratio and reasoning to the specific facts of the case,

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** PTC India…
- **Respondents:** NSL Nagapatnam…; VENKATESWAR…

## Timeline

- **2014-03-10 — Bridge Loan A…**: The 'Bridge Loan Agreement' was reached between 'NSL Nagapatnam Power and Infratech…
- **2014-03-10 — Deed of P…**: The aforesaid ‘debt' was secured by a ‘Deed of Pledge' of shares dated 10th March, 2014…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ptc-india-financial-services-ltd-vs-mr-venkateswarlu-kari-ors-ca-97ece088