# 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-01658. The State Bank of India, acting as the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01658
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/athena-energy-ventures-private-limited-cp-ib-no-466-9-hdb-2019-56604b42

## Summary

### Background

The State Bank of India, acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Athena Energy Ventures Private Limited, the Corporate Debtor and Corporate Guarantor for Athena Chhattisgarh Power Limited (Principal Borrower). The Financial Creditor sought to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to defaults committed by the Principal Borrower, for whom the Corporate Debtor had provided a corporate guarantee. The Principal Borrower had availed financial assistance from the Financial Creditor and other banks, with the Corporate Debtor acting as a promoter and joint venture participant. The Principal Borrower's account was declared a Non-Performing Asset

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## 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 Debtor), seeking to initiate Corporate Insolvency Resolution Process (CIRP). Athena Energy Ventures Private Limited acted as a Corporate Guarantor for Athena Chhattisgarh Power Limited (Principal Borrower). The Principal Borrower had availed financial assistance from the Financial Creditor and other banks. The Financial Creditor sanctioned Rs.3069,68,00,000/- to the Principal Borrower and disbursed Rs.2769,19,05,767/-. The Principal Borrower defaulted, and its account was declared an NPA on 21-12-2015. The Financial Creditor had already filed an application against the Principal Borrower

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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 make a claim for the same set of debt in two separate CIRP

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**Reasoning:** The Adjudicating Authority relied on the judgment of the Hon'ble NCLAT in Dr. Vishnu

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**Interpretation:** The interpretation of Section 7 of the IBC, as clarified by the NCLAT, is that

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**Application:** In this case, the Adjudicating Authority found that a CIRP was already in

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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

- **2015-12-21 — Account Decla…**: The account of the Principal Borrower, Athena Chhattisgarh Power Limited, was declared as…
- **2018-01-08 — NCLAT Jud…**: Hon'ble NCLAT passed a judgment in the case of Vishnu Kumar Agarwal Vs Piramal…

## 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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