# 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-01978. The case involves a petition filed by Bank of India (Financial Creditor) under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Feb 2020
- **Citation:** TCN-2020-NCLT-01978
- **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-de9c518f

## Summary

### Background

The case involves a petition filed by Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s Agnipa Energy Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed a Cash Credit facility of Rs.65 Lacs and a Term Loan limit of 10 crores from the Bank of India in 2013. The Corporate Debtor defaulted on the repayment, leading to its account being declared as a Non-Performing Asset (NPA) on 30.04.2018. The Financial Creditor initiated recovery 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 Pvt. Ltd. in 2013. M/s Agnipa Energy Pvt. Ltd. executed necessary loan documents and created an Equitable Mortgage of immovable properties and Hypothecation of movable properties in favor of Bank of India. M/s Agnipa Energy Pvt. Ltd. defaulted in repayment, and its account was declared a Non-Performing Asset (NPA) on 30.04.2018. Bank of India initiated measures under the SARFAESI Act and also filed Original Application O.A.438 of 2018 with the Debts Recovery Tribunal (DRT), Guwahati. M/s Agnipa Energy Pvt. Ltd. claimed to have suffered severe losses due to the inaction of Bank of India in not taking proper comprehensive Insurance Policy. National

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## 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,

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**Reasoning:** The NCLT held that the Adjudicating Authority has no jurisdiction to go into the various

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

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**Application:** In this case, the Corporate Debtor's contentions regarding losses suffered due

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## Parties

- **Judges:** Mr Hari Venkata…
- **Appellants:** Bank of…
- **Respondents:** M/s Agnipa Energy…
- **Advocates:** S. Du…; A. Hus…; +2 more

## Timeline

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

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