# In the matter of Athena Energy Ventures Private Limited CP (IB) No. 466-9-HDB-2019

> NCLT judgment dated 2020-03-04. Citation: TCN-2020-NCLT-01668. The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01668
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/athena-energy-ventures-private-limited-cp-ib-no-466-9-hdb-2019-56573f6e

## Summary

### Background

The State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Athena Energy Ventures Private Limited, the Corporate Guarantor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). This application was filed due to the default committed by Athena Chhattisgarh Power Limited, the Principal Borrower, for whom Athena Energy Ventures Private Limited had provided a corporate guarantee. The Financial Creditor had already initiated CIRP against the Principal Borrower, which was admitted by the NCLT Hyderabad bench. The Corporate Debtor argued that a second application for the same claim is not maintainable under IBC.

## Facts

The State Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Athena Energy Ventures Private Limited (Corporate Guarantor/Respondent) due to the default of Athena Chhattisgarh Power Limited (Principal Borrower). The Financial Creditor had sanctioned Rs. 3069.68 Crores to the Principal Borrower and disbursed Rs. 2769.19 Crores. The Principal Borrower defaulted, and its account was declared an NPA on 2015-12-21. The Financial Creditor had already filed an application against the Principal Borrower, which was admitted by the NCLT Hyderabad bench on 2019-05-15. The Corporate Debtor argued that the present application is a duplication of the claim and not maintainable under IBC, citing the NCLAT's

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## Issues and analysis

### Issue 1: Whether an application under Section 7 of the IBC can be admitted against the Corporate Guarantor …

**Ratio:** A Financial Creditor cannot pursue two separate Section 7 applications for the same claim

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**Reasoning:** The court relied on the NCLAT's judgment in Dr. Vishnu Kumar Agarwal Vs. M/s. Piramal

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**Interpretation:** The NCLAT's ruling clarifies that while simultaneous applications against the

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**Application:** In this case, since CIRP had already been initiated against the Principal

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## Parties

- **Judges:** Shri. K. Anantha…; BINOD KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** Athena Energy…
- **Advocates:** Saini Kesh…; K.Anil…; +2 more

## Timeline

- **2011-01-01 — Principal Borrower…**: Athena Chhattisgarh Power Limited decided to avail financial assistance from financial…
- **2015-12-21 — Account decla…**: The account of the Principal Borrower was declared as Non-Performing Asset (NPA) by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(2) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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