# In the matter of Confident Solar Private Ltd. CP (IB) No. 507-KB-2017

> NCLT judgment dated 2018-02-05. Citation: TCN-2018-NCLT-01877. SREI Infrastructure Finance Limited, the financial creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 5 Feb 2018
- **Citation:** TCN-2018-NCLT-01877
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/confident-solar-private-ltd-cp-ib-no-507-kb-2017-fd85ab5e

## Summary

### Background

SREI Infrastructure Finance Limited, the financial creditor, filed an application under Section 7(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Confident Solar Private Ltd., the corporate debtor. The application was filed due to the corporate debtor's default in repaying a loan. SREI Infrastructure Finance Limited had granted a total financial assistance of Rs. 650 crores to Confident Solar Private Limited, which was divided into three loan agreements. While two loans were fully repaid, a portion of the third loan remained unpaid, leading to the application for initiating a corporate insolvency resolution process.

## Facts

SREI Infrastructure Finance Limited granted a total financial assistance of Rs. 650 crores to Confident Solar Private Limited ('CSPL') vide sanction letter dated December 21, 2013. This amount was divided into three loan agreements: SRE 410 for Rs. 2,90,00,00,000/-, SRE 455 for Rs. 1,35,00,00,000/-, and SRE 469 for Rs. 2,25,00,00,000/-. The first two loans (Rs. 2,90,00,00,000/- and Rs. 1,35,00,00,000/-) were fully repaid by CSPL. However, a part of Loan III (Rs. 2,25,00,00,000/-) remained due to the extent of Rs. 17,69,37,845/- on account of interest. The outstanding amount of Rs. 17,69,37,845/- was due/defaulted as of June 30, 2017. Confident Solar Private Limited committed default in making payment on June 30, 2017, and continued to default thereafter. SREI

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## Issues and analysis

### Issue 1: Whether the corporate debtor, Confident Solar Private Ltd., committed a default in making payment …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court found that the financial creditor, SREI Infrastructure Finance Limited, had

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** In this case, the court applied the provisions of Section 7 of the IBC to the

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** SREI Infrastructur…
- **Respondents:** Confident Solar…
- **Advocates:** Neha So…

## Timeline

- **2013-12-21 — Sanction Lett…**: SREI Infrastructure Finance Limited granted financial assistance of Rs. 650 crores to…
- **2014-09-05 — Loan Agreement…**: Agreement of Loan III, for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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