# In the matter of Apex Buildsys Ltd. CP No. (IB)-706-(PB)-2018

> NCLT judgment dated 2018-09-20. Citation: TCN-2018-NCLT-00728. ICICI Bank Limited, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 20 Sept 2018
- **Citation:** TCN-2018-NCLT-00728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/apex-buildsys-ltd-cp-no-ib-706-pb-2018-0023b33e

## Summary

### Background

ICICI Bank Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Apex Buildsys Ltd., the corporate debtor. The corporate debtor was incorporated on 06.01.1993. ICICI Bank extended various credit facilities to Apex Buildsys, including rupee term loans and working capital facilities, secured by hypothecation of assets and corporate/personal guarantees. The corporate debtor defaulted on repayment, leading to the account being classified as a non-performing asset (NPA). Despite restructuring agreements, defaults continued, prompting ICICI Bank to

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## Facts

ICICI Bank Limited extended various credit facilities to Apex Buildsys Ltd., including Rupee Term Loan (RTL-I) of INR 100 crores in November 2011, disbursed in two tranches on 22.11.2011 and 12.12.2011, secured by hypothecation of movable fixed assets and current assets. A working capital facility of INR 60 crores was extended in December 2011, later amended to INR 25 crores. Corporate and personal guarantees were provided by Era Infra Engineering Limited and Mr. H.S. Bharana, respectively. The working capital facility was secured by hypothecation and declaration of mortgage. The applicant was inducted into the consortium of lenders led by the State Bank of India in June 2013, securing an overall amount of INR 235.75 crores. A fresh loan of INR 17 crores (RTL-II) was

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency

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**Reasoning:** The Tribunal observed that the application filed by ICICI Bank was complete and in

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP if a default

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**Application:** In this case, the Tribunal found that the application filed by ICICI Bank was

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** ICICI Ban…
- **Respondents:** Apex Builds…

## Timeline

- **1993-01-06 — Incorporation of…**: Apex Buildsys Limited…
- **2011-11-11 — Rupee Term Loa…**: ICICI Bank extended RTL-I of INR…

## 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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