# In the matter of Hipad Technology India Private Limited Company Petition No. (IB)No.421-ALD-2019

> NCLT judgment dated 2020-12-09. Citation: TCN-2020-NCLT-00114. The Industrial and Commercial Bank of China Limited filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 9 Dec 2020
- **Citation:** TCN-2020-NCLT-00114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hipad-technology-india-private-limited-company-petition-no-ibno421-ald-2019-1a93a6ee

## Summary

### Background

The Industrial and Commercial Bank of China Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hipad Technology India Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had approached the Financial Creditor for credit facilities, which were sanctioned via a letter dated 30.08.2018, providing a credit facility of Rs. 40 Crores for one year.

## Facts

The Industrial and Commercial Bank of China Limited (Financial Creditor) extended a credit facility of Rs. 40 Crores to Hipad Technology India Private Limited (Corporate Debtor) via a letter dated 2018-08-30, for a period of one year. The Corporate Debtor requested disbursal of the credit facility on 2018-09-14, and the Financial Creditor disbursed the entire amount to the Corporate Debtor's account on the same date. The amount was due and repayable by 2019-09-13. The Corporate Debtor defaulted on repayment, with only a partial payment of Rs. 4,00,22,691.45/- made on 2019-09-13. The Financial Creditor issued a demand notice on 2019-09-16, demanding liquidation of the outstanding amount of Rs. 36,41,05,434.74/-, but the Corporate Debtor failed to respond or make any

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## Issues and analysis

### Issue 1: Whether there is duly …

**Ratio:** The Adjudicating Authority must be satisfied

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**Reasoning:** The Adjudicating Authority reviewed the facility agreement and other documents submitted

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**Interpretation:** The existence of a financial debt is a prerequisite for initiating CIRP under

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**Application:** The facility agreement and related documents established that Hipad Technology

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Industrial and…
- **Respondents:** HIPAD TECHNOLOGY…

## Timeline

- **2018-08-30 — Credit Facility…**: The Financial Creditor sanctioned a credit facility of Rs. 40 Crores to the Corporate…
- **2018-09-14 — Disbursal of Credit…**: The Financial Creditor disbursed the entire credit facility of Rs. 40 Crores to the…

## 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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