# In the matter of Cauvery Power Generation Private Limited IBA-756-2019

> NCLT judgment dated 2019-10-18. Citation: TCN-2019-NCLT-00915. The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLT-00915
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cauvery-power-generation-private-limited-iba-756-2019-70c1974c

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by Punjab National Bank (Financial Creditor) against M/s. Cauvery Power Generation Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor defaulted on a loan of ₹13,71,05,776.34/- which was overdue as of 31.12.2018. Prior to this, the Financial Creditor initiated proceedings under Section 13(2) of the SARFAESI Act for recovery, which proved unsuccessful. The Corporate Debtor initially sought settlement opportunities, but no fruitful outcome was achieved.

## Facts

M/s. Cauvery Power Generation Private Limited (Corporate Debtor) defaulted on a loan of ₹13,71,05,776.34/- to Punjab National Bank (Financial Creditor), overdue as of 31.12.2018. The Corporate Debtor was registered on 09.04.2009 under the Companies Act, 1956. The authorized share capital of the company is ₹79,00,00,000/-, and the paid-up share capital is ₹78,79,22,000/-. The Corporate Debtor had initially approached various nationalized banks, including Punjab National Bank, for a term loan amounting to ₹184 Crores. The Financial Creditor initiated proceedings under Section 13(2) of the SARFAESI Act, which did not result in recovery. The Corporate Debtor's account with State Bank of India (SBI) was classified as NPA in September 2018, and subsequently, the Financial

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Cauvery Power Generation Private Limited, defaulted in repaying …

**Ratio:** The legal principle is that if a corporate debtor defaults in repaying its debt to a

…

**Reasoning:** The court considered the submissions of the Financial Creditor, which included evidence

…

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

…

**Application:** The court applied the principle to the facts by acknowledging the Corporate

…

## Parties

- **Judges:** B.S.V. Prakash…; B. ANIL…
- **Appellants:** Punjab National…
- **Respondents:** Cauvery Power…

## Timeline

- **2009-04-09 — Registration of…**: M/s. Cauvery Power Generation Private Limited…
- **2010-02-22 — Board Resol…**: Board Resolutions passed by the Board of Directors, Corporate Debtor, and Corporate…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/cauvery-power-generation-private-limited-iba-756-2019-70c1974c