# In the matter of KSK Energy Ventures Limited CP (IB) No. 675-7-HDB-2018

> NCLT judgment dated 2019-09-04. Citation: TCN-2019-NCLT-01568. The petition was filed by IFCI Limited, the Financial Creditor, against KSK Energy Ventures…

- **Court:** NCLT
- **Order date:** 4 Sept 2019
- **Citation:** TCN-2019-NCLT-01568
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ksk-energy-ventures-limited-cp-ib-no-675-7-hdb-2018-4f7cc0cb

## Summary

### Background

The petition was filed by IFCI Limited, the Financial Creditor, against KSK Energy Ventures Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016. The petition sought the initiation of the Corporate Insolvency Resolution Process (CIRP), the granting of a moratorium, and the appointment of an Interim Resolution Professional (IRP). The Financial Creditor claimed that the Corporate Debtor had defaulted in repaying a sum of Rs. 51,87,77,388/-.

## Facts

IFCI Limited, the Financial Creditor, filed a petition against KSK Energy Ventures Limited, the Corporate Debtor, under Section 7 of the IBC, claiming a default of Rs. 51,87,77,388/-. IFCI had sanctioned a Rupee Term Loan of Rs. 100,00,00,000/- to KSK Energy Ventures, with Rs. 50,00,00,000/- disbursed. The loan tenure was 6 years, repayable in 20 quarterly installments. KSK Energy Ventures defaulted, leading to its account being classified as a Non-Performing Asset on 31-03-2018. IFCI issued a recall notice on 06.09.2018, which KSK Energy Ventures failed to comply with. IFCI also initiated proceedings before the Debt Recovery Tribunal (DRT) and under the SARFESI Act. The Corporate Debtor admitted to availing the term loan but cited various reasons for its failure to

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## Issues and analysis

### Issue 1: Whether the Financial Creditor can maintain the present petition under Section 7 of IBC given the …

**Ratio:** The pendency of DRT proceedings and initiation of action under SARFESI Act cannot be an

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**Reasoning:** The court reasoned that the existence of parallel proceedings before the DRT or under the

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**Interpretation:** This interprets Section 7 of the IBC to allow for the initiation of CIRP even

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**Application:** The court applied this principle to the facts, noting that the ongoing DRT

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** M/S. IFCI L…
- **Respondents:** M/s. KSK Energy…

## Timeline

- **2015-05-26 — Sanction…**: Financial Creditor…
- **2016-01-12 — Letter of Reva…**: Letter of Revalidation…

## 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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