# In the matter of Lanco Mandakini Hydro Energy Pvt. Ltd. Company Petition (IB)No.85-ALD-2020

> NCLT judgment dated 2020-06-11. Citation: TCN-2020-NCLT-01187. Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 11 Jun 2020
- **Citation:** TCN-2020-NCLT-01187
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-mandakini-hydro-energy-pvt-ltd-company-petition-ibno85-ald-2020-2f5f650a

## Summary

### Background

Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Lanco Mandakini Hydro Energy Pvt. Ltd. The petition was based on the corporate debtor's inability to liquidate its financial debt. The financial creditor had sanctioned financial assistance in the form of term loans amounting to Rs. 138.24 Cr. The corporate debtor failed to adhere to the terms and conditions of the agreements, leading to the account being classified as Non-Performing Asset (NPA).

## Facts

Axis Bank Ltd., the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Lanco Mandakini Hydro Energy Pvt. Ltd., the corporate debtor. The financial creditor had sanctioned term loans amounting to Rs. 138.24 Cr. to the corporate debtor. The corporate debtor defaulted on the repayment obligations, leading to its account being classified as a Non-Performing Asset (NPA) on September 30, 2017. The total default outstanding was claimed to be Rs. 149,88,18,088. The corporate debtor admitted to the debt in its counter affidavit. The application was filed on February 4, 2020, and the date of default was August 31, 2019. The adjudicating authority found the

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## Issues and analysis

### Issue 1: Whether there is a duly …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, requires the existence of a

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**Reasoning:** The corporate debtor admitted to the debt in its counter affidavit, and the financial

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**Interpretation:** A financial debt is established when there is a legally binding obligation on

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**Application:** In this case, the sanctioned loans and the corporate debtor's admission of debt

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Axis Ban…
- **Respondents:** Lanco Mandakini…
- **Advocates:** Gunjan Ja…; Aditya…

## Timeline

- **2009-07-17 — Term Loans Sa…**: Financial creditor sanctioned term loans…
- **2017-09-30 — Account Decla…**: The account of the corporate…

## 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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