# in the matter of ABG Shipyard Ltd. CP (IB) No. 53-7-AHM-2017

> NCLT judgment dated 2017-08-01. Citation: TCN-2017-NCLT-00675. ICICI Bank Ltd., as the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 1 Aug 2017
- **Citation:** TCN-2017-NCLT-00675
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abg-shipyard-ltd-cp-ib-no-53-7-ahm-2017-e028805d

## Summary

### Background

ICICI Bank Ltd., as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against ABG Shipyard Ltd., the corporate debtor. The application was filed due to defaults in various restructured facilities committed by the corporate debtor. The financial creditor sought to initiate CIRP based on the defaults under various loan facilities and guarantees provided to the corporate debtor.

## Facts

ICICI Bank Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ABG Shipyard Ltd. ABG Shipyard Ltd. defaulted on various restructured facilities. The total amount claimed as on June 21, 2017, was Rs. 4291.90 crores. The defaults included amounts under term loans, priority loans, FITL facilities, and working capital facilities. ABG Shipyard Ltd. had executed guarantee deeds and letters of comfort in favor of ICICI Bank Ltd. A winding-up petition against ABG Shipyard Ltd. was pending before the Hon'ble High Court of Gujarat. The Reserve Bank of India had appealed to the financial creditor to initiate Insolvency Resolution Process. The date of default for all the

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## Issues and analysis

### Issue 1: Whether the application filed by ICICI Bank Ltd. under Section 7 of the Insolvency and Bankruptcy …

**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 provisions of Section 7 of the Insolvency and

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the CIRP,

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**Application:** The adjudicating authority found that ICICI Bank Ltd. was a financial creditor

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Respondents:** ABG Shipyard…; ABG Shipyar…

## Timeline

- **2014-03-28 — Master Restructuring…**: Financial creditors granted several loan facilities to the corporate debtors under Master…
- **2014-07-30 — First Amendmen…**: The first amendment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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