# In the matter of McNally Sayaji Engineering Limited CP No.131-KB-2020

> NCLT judgment dated 2021-02-11. Citation: TCN-2021-NCLT-03067. ICICI Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Feb 2021
- **Citation:** TCN-2021-NCLT-03067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mcnally-sayaji-engineering-limited-cp-no131-kb-2020-f2d83596

## Summary

### Background

ICICI Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against McNally Sayaji Engineering Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition was filed due to defaults in repayment of loan facilities granted by ICICI Bank to McNally Sayaji Engineering Limited. The Corporate Debtor had sought restructuring initiatives and presented a resolution plan, but the matter remained unresolved.

## Facts

ICICI Bank Limited granted various loan facilities to McNally Sayaji Engineering Limited, including Rupee Term Loan facilities and a Working Capital facility. The cumulative value of the Rupee term loan facilities was Rs. 50,00,00,000/-. The Corporate Debtor defaulted on repayments, with the total amount overdue as of December 31, 2019, being Rs. 74,85,66,318.41. The dates of default for the Rupee Term Loan facilities were January 31, 2019, and for the Working Capital facility, it was January 28, 2019. The Financial Creditor secured the loan through various documents and securities. The Corporate Debtor attempted to restructure its debts and presented a resolution plan, but the plan was not implemented. The Financial Creditor issued a demand-cum-loan recalling notice

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of the financial debt owed to the …

**Ratio:** Section 7(1) of the Insolvency and Bankruptcy Code, 2016, stipulates that a default in

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**Reasoning:** The court examined the documents and evidence presented by the Financial Creditor, which

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**Interpretation:** The term 'default' under Section 7(1) is interpreted as the failure to repay a

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**Application:** In this case, the Financial Creditor provided evidence of the loan

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** ICICI Bank…
- **Respondents:** McNally Sayaji…

## Timeline

- **2020-01-14 — Initial Heari…**: The matter was…
- **2020-02-07 — Adjournment for Filing…**: The Corporate Debtor sought time to…

## 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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