# in the matter of Jyoti Structures Ltd. CP No. 1137-I&BP-NCLT-MAH-2017

> NCLT judgment dated 2017-07-04. Citation: TCN-2017-NCLT-00764. State Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Jul 2017
- **Citation:** TCN-2017-NCLT-00764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jyoti-structures-ltd-cp-no-1137-ibp-nclt-mah-2017-9988d50e

## Summary

### Background

State Bank of India filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jyoti Structures Ltd., the Corporate Debtor. The Corporate Debtor had availed loan facilities amounting to ₹1,227.25 crores. The Corporate Debtor defaulted on repayments, leading to a Master Restructuring Agreement (MRA) dated September 29, 2014. When the restructuring failed, the applicant initiated Insolvency Resolution Process against the Corporate Debtor. As of June 20, 2017, the Corporate Debtor had an outstanding balance of ₹1,600.74 crores.

## Facts

Jyoti Structures Ltd. availed loan facilities of ₹1,227.25 crores from State Bank of India and State Bank of Hyderabad. A working capital consortium agreement was executed on March 15, 2012. Due to the debtor's failure to repay the loan, a Master Restructuring Agreement (MRA) was entered on September 29, 2014. The MRA also failed, leading to the filing of an application to initiate Insolvency Resolution Process. As of June 20, 2017, the outstanding balance was ₹1,600.74 crores. State Bank of Hyderabad merged with State Bank of India effective April 1, 2017. The financial creditor provided details of the disbursement under Exhibit-4. The petitioner filed the Status Classification Report dated June 22, 2017, issued by the Central Repository of Information of Large

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying its debt to the Financial Creditor, justifying …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court examined the documents and reasons provided and was satisfied that the debtor

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

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**Application:** The court found that Jyoti Structures Ltd. defaulted on its loan repayments to

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** State Bank of…
- **Respondents:** Jyoti Structures…; Amit…

## Timeline

- **2012-03-15 — Loan Facility…**: State Bank of India granted a loan facility of…
- **2014-09-29 — Master Restructuring…**: A Master Restructuring Agreement was entered into due to the debtor's failure to repay…

## 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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