# In the matter of Moser Baer Solar Ltd. C.P. No. IB-272-(PB)-2017

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00204. The Central Bank of India, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moser-baer-solar-ltd-cp-no-ib-272-pb-2017-73cac23f

## Summary

### Background

The Central Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Moser Baer Solar Ltd., the corporate debtor. The financial creditor claimed a default of Rs. 114,03,90,617.00 as of 31.07.2017, with the account classified as NPA on 30.12.2015. The financial creditor had sanctioned fund-based working capital limits and term loans to the corporate debtor, which were later restructured in March 2013, but the restructuring failed, and concessions were withdrawn.

## Facts

The Central Bank of India, acting as the financial creditor, initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Moser Baer Solar Ltd., the corporate debtor. The financial creditor claimed a default of Rs. 114,03,90,617.00 as of 31.07.2017, and the account had been classified as a Non-Performing Asset (NPA) on 30.12.2015. The financial creditor had initially sanctioned working capital limits of Rs. 25.00 Crore and a term loan of Rs. 50.00 Crore to the corporate debtor in September 2010. A corporate debt restructuring was attempted in March 2013 but failed, leading to the withdrawal of concessions. The corporate debtor did not oppose the application filed by the financial creditor, indicating an acceptance of the default. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The court observed that the financial creditor had provided sufficient evidence to prove

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The financial creditor, Central Bank of India, demonstrated that it had

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Central Bank of…
- **Respondents:** Moser Baer Solar…; Varsha Ba…

## Timeline

- **2010-09-01 — Initial Loan…**: Financial Creditor sanctioned fund-based…
- **2013-03-01 — Corporate Debt…**: Corporate Debt Restructuring was…

## 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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