# In the matter of Innoventive Industries Ltd C.P. 01- I&BP- NCLT- MAH-2016

> NCLT judgment dated 2017-01-17. Citation: TCN-2017-NCLT-00992. ICICI Bank Ltd. filed a Company Petition against Innoventive Industries Ltd. under Section 7 of…

- **Court:** NCLT
- **Order date:** 17 Jan 2017
- **Citation:** TCN-2017-NCLT-00992
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/innoventive-industries-ltd-cp-01-ibp-nclt-mah-2016-931c0e83

## Summary

### Background

ICICI Bank Ltd. filed a Company Petition against Innoventive Industries Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, stating that Innoventive Industries defaulted on payments for term loan, working capital facility, and external commercial borrowing facilities. The default occurred on 30.11.2016. Innoventive Industries had availed financial assistance of industrial promotion subsidy from the Government of Maharashtra. The corporate debtor argued that its debts were suspended under the Maharashtra Relief Undertaking (Special Provisions) Act, which provides relief to industries to prevent unemployment. The applicant argued that Section 238 of the IBC overrides the MRU Act.

## Facts

ICICI Bank Ltd. filed a Company Petition against Innoventive Industries Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. Innoventive Industries defaulted on payments for a term loan facility of ₹40,74,57,388, a working capital facility of ₹21,80,00,000, and a $7 million external commercial borrowing facility. The default occurred on 30.11.2016. The total outstanding amount payable by Innoventive Industries was ₹1,019,177,034 as of November 30, 2016. Innoventive Industries argued that its debts were suspended under the Maharashtra Relief Undertaking (Special Provisions) Act, enacted on 18.7.2016, which provided financial assistance of industrial promotion subsidy of ₹115,36,40,000. The corporate debtor filed an application stating that its debts were

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## Issues and analysis

### Issue 1: Whether the non-obstante clause in Section 238 of the Insolvency and Bankruptcy Code, 2016, …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, has an overriding effect over other laws due to

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**Reasoning:** The court reasoned that the IB Code came into existence subsequent to the MRU Act. The

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**Interpretation:** Section 238 of the IBC is interpreted to have an overriding effect, ensuring

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**Application:** The court applied this ratio to the facts by stating that the IBC prevails over

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** ICICI Ban…
- **Respondents:** Innoventive…; M/s. Innoventive…

## Timeline

- **2016-12-22 — Company Petiti…**: ICICI Bank Ltd. filed a Company Petition…
- **2016-11-30 — Default…**: Innoventive Industries…

## 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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