# In the matter of Maadurga Thermal Power Company Limited CP (IB) No. 129-KB-2018

> NCLT judgment dated 2018-06-08. Citation: TCN-2018-NCLT-01304. SREI Equipment Finance Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Jun 2018
- **Citation:** TCN-2018-NCLT-01304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maadurga-thermal-power-company-limited-cp-ib-no-129-kb-2018-bf787af4

## Summary

### Background

SREI Equipment Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Maadurga Thermal Power Company Limited, citing default in repayment of a loan. The Financial Creditor had previously proposed Mr. Subodh Kumar Agrawal as Interim Resolution Professional (IRP), who later withdrew, and Mr. Rajesh Kumar Agrawal was proposed as a substitute.

## Facts

SREI Equipment Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Maadurga Thermal Power Company Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor defaulted on loan repayments, with a total outstanding amount of Rs. 242,92,24,575/-. The loan was provided through five loan agreements dated 30.09.2013, 22.09.2014, 03.07.2015, 22.07.2015, and 01.10.2015, totaling Rs. 1,80,10,00,001/-. The Corporate Debtor admitted the debt but sought more time to pay. The Financial Creditor rejected the request for additional time. The Financial Creditor was incorporated on 13th June, 2006. The Corporate Debtor was

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has successfully proven that the Corporate Debtor committed a …

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

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**Reasoning:** The court perused the records and found that the Corporate Debtor had indeed committed

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**Interpretation:** The interpretation of Section 7 requires the adjudicating authority to be

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**Application:** In this case, the Financial Creditor presented loan agreements, statements of

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** SREI Equipment…
- **Respondents:** Maadurga Thermal…

## Timeline

- **2006-06-13 — Incorporation of…**: SREI Equipment Finance…
- **2008-12-15 — Incorporation of…**: Maadurga Thermal Power…

## 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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