# In the matter of Monnet Ispat & Energy Limited (MA Nos. 199, 223 & 261-2018 In CP 1139-2017)

> NCLT judgment dated 2018-06-05. Citation: TCN-2018-NCLT-01328. The case involves three Miscellaneous Applications (MA 199/2018, MA 223/2018, and MA 261/2018)…

- **Court:** NCLT
- **Order date:** 5 Jun 2018
- **Citation:** TCN-2018-NCLT-01328
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/monnet-ispat-energy-limited-ma-nos-199-223-261-2018-in-cp-1139-2017-a2eb4c9b

## Summary

### Background

The case involves three Miscellaneous Applications (MA 199/2018, MA 223/2018, and MA 261/2018) filed in CP 1139/2017 before the National Company Law Tribunal (NCLT), Mumbai Bench. These applications relate to claims by financial creditors (IFCI Ltd, ICICI Bank Ltd, and Standard Chartered Bank Ltd) against Monnet Ispat & energy Limited, the Corporate Debtor, under the Insolvency and Bankruptcy Code (IBC), 2016. The core issue revolves around the rejection or revision of claims submitted by these financial creditors by the Resolution Professional (Mr. Sumit Binani) during the Corporate Insolvency Resolution Process (CIRP). The applications were initially allowed, with reasons to be provided later, primarily due to the request of all parties and the stay being in

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## Facts

The case involves Monnet Ispat & energy Limited (Corporate Debtor) undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). IFCI Ltd, ICICI Bank Ltd, and Standard Chartered Bank Ltd are financial creditors who filed claims against the Corporate Debtor. IFCI Ltd granted a subordinated rupee loan to Monnet Power Co. Ltd, secured by a corporate guarantee and equitable mortgage from Monnet Ispat & energy Limited. ICICI Bank provided an External Commercial Borrowing (ECB) facility to Monnet Power Co. Ltd, with Monnet Ispat & energy Limited providing a Letter of Comfort. Monnet Power defaulted on payments, leading to the account being classified as a Non-Performing Asset (NPA). State Bank of India initiated CIRP

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting or reducing the claims submitted by …

**Ratio:** The definition of 'claim' under the Insolvency and Bankruptcy Code (IBC) includes both

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**Reasoning:** The court reasoned that the claims submitted by the financial creditors, including those

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**Interpretation:** The interpretation of 'claim' under the IBC is broad and inclusive,

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**Application:** The court applied this interpretation to the specific facts of the case,

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** ICICI Ban…
- **Respondents:** Monnet Ispat &…; Sumit B…

## Timeline

- **2010-12-31 — ICICI Bank provides ECB…**: ICICI Bank Ltd provided an External Commercial Borrowing (ECB) facility to Monnet Power…
- **2011-03-25 — ECB Facility A…**: ECB Facility Agreement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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