# In the matter of Agnipa Energo Pvt. Ltd. I.A. No. 09-2020 in C.P (IB)No. 37-GB-2019

> NCLT judgment dated 2020-02-12. Citation: TCN-2020-NCLT-01980. Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 12 Feb 2020
- **Citation:** TCN-2020-NCLT-01980
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/agnipa-energo-pvt-ltd-ia-no-09-2020-in-cp-ibno-37-gb-2019-a0340b28

## Summary

### Background

Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Agnipa Energy Private Limited for initiating Corporate Insolvency Resolution Process (CIRP). The bank claimed that it had sanctioned a Cash Credit facility of Rs.65 Lacs and a Term Loan limit of 10 crores to the corporate debtor in 2013. The corporate debtor defaulted on repayment, leading to the account being declared a Non-Performing Asset (NPA) on 30.04.2018. The bank initiated measures under the SARFAESI Act and also filed an Original Application with the Debts Recovery Tribunal (DRT).

## Facts

Bank of India sanctioned a Cash Credit facility of Rs.65 Lacs and a Term Loan limit of 10 crores to M/s Agnipa Energy Private Limited in 2013. The Corporate Debtor (CD) executed necessary loan documents and created an Equitable Mortgage of immovable properties and Hypothecation of movable properties in favor of the Bank. The CD defaulted on repayment, and the loan account was declared an NPA on 30.04.2018. The Bank initiated measures under the SARFAESI Act, including issuing a demand notice and disposing of some mortgaged properties. The Bank also filed Original Application O.A.438 of 2018 with the Debts Recovery Tribunal (DRT), Guwahati. The CD claimed to have suffered losses due to the Bank's failure to obtain a comprehensive insurance policy, leading to the

…

## Issues and analysis

### Issue 1: Whether the CD can raise all the above …

**Ratio:** The proceedings before NCLT are summary in nature, and the adjudicating authority

…

**Reasoning:** The NCLT stated that its jurisdiction in a Section 7 application is limited to verifying

…

**Interpretation:** This interpretation emphasizes the limited scope of inquiry for the NCLT under

…

**Application:** The NCLT applied this principle by stating that the contentions raised by the

…

## Parties

- **Judges:** Mr Hari Venkata…
- **Appellants:** Bank of…
- **Respondents:** M/s Agnipa Energy…

## Timeline

- **2013-01-01 — Loan San…**: Bank of India sanctioned a Cash Credit facility of Rs.65 Lacs and Term Loan limit of 10…
- **2018-04-30 — Account Decla…**: The loan account of M/s Agnipa Energy Pvt. Ltd. was declared as Non-Performing Asset…

## 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/nclt-chandigarh/agnipa-energo-pvt-ltd-ia-no-09-2020-in-cp-ibno-37-gb-2019-a0340b28