# In the matter of Indu Projects Limited CP(IB)No. 372-7-HDB-2018

> NCLT judgment dated 2019-02-25. Citation: TCN-2019-NCLT-04697. The case involves a petition filed by Bank of India, the Financial Creditor, against Indu…

- **Court:** NCLT
- **Order date:** 25 Feb 2019
- **Citation:** TCN-2019-NCLT-04697
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indu-projects-limited-cpibno-372-7-hdb-2018-74949ec9

## Summary

### Background

The case involves a petition filed by Bank of India, the Financial Creditor, against Indu Projects Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor is engaged in engineering, procurement, construction, real estate, and property development. It had availed term loans, working capital limits, and other non-fund-based limits from the Financial Creditor and other financial institutions under a consortium banking arrangement. A Master Restructuring Agreement (MRA) was entered into on 2012-09-28. Despite the restructuring, the Corporate Debtor defaulted on payments, leading to its accounts becoming Non-Performing Assets (NPA). The Financial Creditor claims that the Corporate Debtor defaulted on the terms of the

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## Facts

Bank of India, the Financial Creditor, filed a petition against Indu Projects Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. Indu Projects Limited is involved in engineering, procurement, construction, real estate, and property development. The Corporate Debtor had availed various loan facilities from the Financial Creditor and other financial institutions under a consortium banking arrangement. A Master Restructuring Agreement (MRA) was entered into on 2012-09-28. Despite the restructuring, the Corporate Debtor defaulted on payments, leading to its accounts becoming Non-Performing Assets (NPA). The Financial Creditor claims that the Corporate Debtor defaulted on the terms of the MRA, constituting 'Events of Default'. The

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## Issues and analysis

### Issue 1: Whether the petition 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

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and the documents

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

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**Application:** The Adjudicating Authority found that the Financial Creditor had placed

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** Bank of…
- **Respondents:** Indu Projects…

## Timeline

- **2012-09-28 — Master Restructuring…**: Master Restructuring Agreement entered into between the Financial Creditor, other banks,…
- **2018-06-07 — Application under…**: The appellant filed application…

## 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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