# In the matter of Millennium Appliances India Limited CP (IB) -509-I&BP-MB-2018

> NCLT judgment dated 2018-08-31. Citation: TCN-2018-NCLT-00847. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Aug 2018
- **Citation:** TCN-2018-NCLT-00847
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/millennium-appliances-india-limited-cp-ib-509-ibp-mb-2018-9a13af3c

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Millennium Appliances India Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was based on the Corporate Debtor's default in repaying various facilities granted by State Bank of India and its associate banks. The default occurred on 31.01.2017, with an outstanding amount of Rs. 456.90 crores, leading to a total outstanding of Rs. 3171.37 crores. The Corporate Debtor was a co-obligor under a Rupee Term Loan agreement dated 08.08.2012, with Videocon Industries Limited (VIL) as the 'Obligor Agent'. The RBI had directed that NPA accounts, including Videocon Industries Limited, be resolved outside the Insolvency and Bankruptcy

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## Facts

State Bank of India (SBI) filed a petition against Millennium Appliances India Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. Millennium Appliances India Limited is a co-obligor under a Rupee Term Loan agreement dated 08.08.2012, where Videocon Industries Limited (VIL) is the 'Obligor Agent'. The Corporate Debtor defaulted on 31.01.2017, with an outstanding amount of Rs. 456.90 crores, leading to a total outstanding of Rs. 3171.37 crores. SBI and its associate banks (State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, State Bank of Bikaner & Jaipur, and State Bank of Patiala) had granted various facilities to the Corporate Debtor. The petitioner along with its associate banks entered into a Rupee

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## Issues and analysis

### Issue 1: Whether the petition filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The Tribunal found that the Corporate Debtor had defaulted in repaying the loan, and the

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

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**Application:** The Tribunal applied Section 7 to the facts of the case, finding that State

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** State Bank of…
- **Respondents:** Millennium…

## Timeline

- **2010-05-31 — Rupee Facility…**: The petitioner along with its associate banks…
- **2010-08-30 — Agreement of Modificatio…**: The Rupee Facility Agreement was amended by the Agreement of Modification with Videocon…

## 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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