# In the matter of Ezeego One Travel & Tours Limited CP (IB) 03-MB-C-II-2020

> NCLT judgment dated 2021-03-09. Citation: TCN-2021-NCLT-02767. Yes Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 9 Mar 2021
- **Citation:** TCN-2021-NCLT-02767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ezeego-one-travel-tours-limited-cp-ib-03-mb-c-ii-2020-632fcf09

## Summary

### Background

Yes Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Ezeego One Travel & Tours Limited, the Corporate Debtor, due to defaults on four financing agreements. The Corporate Debtor is a private company incorporated on 06.01.2006. The Financial Creditor disbursed loans/facilities amounting to INR 1000,00,00,000/- between 2017 and 2018. The Corporate Debtor defaulted on repayments, leading to a total outstanding amount of Rs.1002,60,83,298.33 as of August 28, 2019.

## Facts

Yes Bank Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ezeego One Travel & Tours Limited (Corporate Debtor). The Corporate Debtor is a private company incorporated on 06.01.2006. The Financial Creditor disbursed loans/facilities amounting to INR 1000,00,00,000/- between 2017 and 2018 under four financing agreements: Term Loan, Short Term Loan, Factoring Agreement, and Overdraft Facility. The Corporate Debtor defaulted on repayments, leading to a total outstanding amount of Rs.1002,60,83,298.33 as of August 28, 2019. The Financial Creditor presented evidence of loan disbursement, default, and acknowledgment of debt by the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial …

**Ratio:** The scope of enquiry under a Section 7 Petition is limited to ascertaining disbursement

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**Reasoning:** The NCLT relied on the decision of the Supreme Court in M/s. Innoventive Industries

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

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**Application:** The NCLT found that the Financial Creditor had provided sufficient evidence of

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## Parties

- **Judges:** Harihar Prakash…; Ravikumar…; +1 more
- **Appellants:** Yes Bank L…
- **Respondents:** Ezeego One Travel…; EZEEGO ONE TRAVEL…

## Timeline

- **2006-01-06 — Incorporation of…**: Ezeego One Travel &…
- **2017-05-16 — First Loan Dis…**: First loan disbursed by Yes Bank Limited…

## 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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