# In the matter of Ind-Barath Thermal Power Limited CP (IB) No. 745-7-HDB-2019

> NCLT judgment dated 2021-12-30. Citation: TCN-2021-NCLT-00004. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 Dec 2021
- **Citation:** TCN-2021-NCLT-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ind-barath-thermal-power-limited-cp-ib-no-745-7-hdb-2019-ae9bbef2

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Ind Barath Thermal Power Ltd, alleging default in payment of debt amounting to Rs.327,51,72,704/-. The Corporate Debtor had availed credit facilities under a consortium arrangement with other lenders, secured by mortgages, hypothecation, and pledge of shares. The Financial Creditor classified the Corporate Debtor's account as a Non-Performing Asset (NPA) on 31.03.2018 and initiated steps for realization of dues, including issuing notices under SARFAESI Act and filing an Original Application before the Debt Recovery Tribunal.

## Facts

Punjab National Bank (PNB), a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ind Barath Thermal Power Limited, the corporate debtor, for defaulting on a debt of Rs.327,51,72,704. The corporate debtor had availed credit facilities under a consortium arrangement with other lenders. These facilities were secured by mortgages on land, hypothecation of moveable assets, and pledge of shares by Ind Barath Power Infra Limited and Aarkey Energy (Rameshwaram) Limited. PNB classified the corporate debtor's account as a Non-Performing Asset (NPA) on March 31, 2018, and took steps to recover its dues, including issuing notices under the Securitisation and Reconstruction of Financial Assets and Enforcement of

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## Issues and analysis

### Issue 1: Whether a Financial Creditor, despite being a Member of Consortium can individually maintain an …

**Ratio:** Section 7(1) of the I&B Code, 2016 allows a financial creditor to file an application

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**Reasoning:** The Tribunal found no bar for the Financial Creditor to initiate proceedings individually

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**Interpretation:** Section 7(1) provides the legal basis for a financial creditor to initiate

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**Application:** The Tribunal applied Section 7(1) to the facts, determining that Punjab

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** Punjab National…
- **Respondents:** Ind Barath…; Ind Barath…
- **Advocates:** Sanjay…; Yogesh…; +1 more

## Timeline

- **2017-03-15 — Revival L…**: Corporate Debtor acknowledged liability…
- **2018-03-31 — Account Classified as…**: Punjab National Bank classified the 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)

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