# In the matter of Amrapali Infrastructure Pvt. Ltd. CP No. (IB)-123 (PB)-2017

> NCLT judgment dated 2017-09-25. Citation: TCN-2017-NCLT-00359. Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Sept 2017
- **Citation:** TCN-2017-NCLT-00359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amrapali-infrastructure-pvt-ltd-cp-no-ib-123-pb-2017-7a778662

## Summary

### Background

Bank of Baroda filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Amrapali Infrastructure Private Limited, citing defaults on term loan, cash credit facility, and letter of credit. The financial creditor, Bank of Baroda, claimed that Amrapali Infrastructure Private Limited defaulted on payments, leading to a substantial outstanding amount. The corporate debtor opposed the admission, arguing that the demand was arbitrary, the applicant was part of a consortium, and the application was incomplete. The corporate debtor also raised objections regarding the power of attorney of Ms. Archana Mishra and discrepancies in the default amount.

## Facts

Bank of Baroda, the 'Financial Creditor', filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to trigger the Corporate Insolvency Resolution Process against Amrapali Infrastructure Private Limited, the 'Corporate Debtor'. The Corporate Debtor defaulted on a term loan, cash credit facility, and letter of credit. The term loan facility was for Rs. 53,75,00,000, with the financial creditor contributing Rs. 53,09,00,000. The principal amount in default for the term loan as of 30.04.2017 was Rs. 44,59,00,000, with overdue and penal interest aggregating to Rs. 7,18,50,626. The Corporate Debtor defaulted on the term loan on 31.07.2016. A working capital agreement was also in place, with a cash credit facility of Rs. 17,50,00,000 and a letter of

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## Issues and analysis

### Issue 1: Whether the application filed by Bank of Baroda 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 NCLT found that the Corporate Debtor had defaulted on its debt obligations to the

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**Interpretation:** Section 7 of the Code provides the mechanism for a financial creditor to

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**Application:** The NCLT applied Section 7 of the Code to the facts of the case, finding that

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Bank of B…
- **Respondents:** Amrapali Infrastru…

## Timeline

- **1911-03-02 — Incorporation of Bank…**: Bank of Baroda was…
- **2007-12-28 — Incorporation of Amrapali Infrastructure…**: Amrapali Infrastructure…

## 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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