# In the matter of Enfield Solar Energy Ltd. C.P. (IB) No. 354-KB-2018

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02763. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/enfield-solar-energy-ltd-cp-ib-no-354-kb-2018-6d61baaa

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Enfield Solar Energy Ltd. The Corporate Debtor allegedly failed to repay a principal amount of Rs. 49,36,98,687.80 along with interest, totaling Rs. 81,10,16,834.00, advanced by the Financial Creditor through loans and credit facilities. The Corporate Debtor was granted various loan and credit facilities, including working capital and term loans, which were restructured due to financial constraints. The Financial Creditor contends that despite repeated requests and reminders, the accounts remained irregular, leading to their classification as Non-Performing Assets (NPA) on 28.08.2014, in accordance

…

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Enfield Solar Energy Ltd., the Corporate Debtor. SBI claimed that Enfield Solar Energy Ltd. defaulted on repayment of principal amounting to Rs. 49,36,98,687.80, with the total outstanding, including interest, reaching Rs. 81,10,16,834.00. The loans and credit facilities were granted to the Corporate Debtor and were later restructured. SBI contended that despite repeated requests, the accounts remained irregular, leading to their classification as Non-Performing Assets (NPA) on 28.08.2014. A demand notice was issued on 18.09.2015. SBI produced various documents,

…

## 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, allows a Financial Creditor to

…

**Reasoning:** The court observed that the Financial Creditor had filed the application under Section 7

…

**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

…

**Application:** The court applied Section 7 to the facts of the case, noting that the Financial

…

## Parties

- **Judges:** Madan B.…
- **Appellants:** State Bank of…
- **Respondents:** Enfield Solar…

## Timeline

- **2013-08-14 — Master Restructuring…**: Master Restructuring Agreement dated 14.08.2013 in aggregated amounting to Rs.…
- **2014-08-28 — Account Classified as…**: Accounts have been categorised as NPA on 28.08.2014 in accordance with the guidelines and…

## 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/enfield-solar-energy-ltd-cp-ib-no-354-kb-2018-6d61baaa