# In the matter of Namratha Power Pvt. Ltd. C (IB) No. 244-CB-2020

> NCLT judgment dated 2021-04-12. Citation: TCN-2021-NCLT-02403. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Apr 2021
- **Citation:** TCN-2021-NCLT-02403
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/namratha-power-pvt-ltd-c-ib-no-244-cb-2020-21fb59cc

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Namratha Power Private Limited. The applicant, KSK Electricity Financing India Pvt. Ltd., claims that a loan in the form of Inter Corporate Deposit (ICD) was given under an ICD Agreement dated 2010-03-10 for Rs. 2,50,00,000 with 12% interest per annum by M/s. Wardha Power Corporation. The loan was assigned to the applicant via a deed of assignment dated 2018-04-01. The corporate debtor failed to repay the loan, with the date of default being 2019-03-01. The total sum due is Rs. 5,29,83,826.

## Facts

KSK Electricity Financing India Pvt. Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Namratha Power Private Limited. The basis for the application is a loan initially given as an Inter Corporate Deposit (ICD) by M/s. Wardha Power Corporation to Namratha Power Private Limited on 2010-03-10 for Rs. 2,50,00,000 at an interest rate of 12% per annum. This loan was later assigned to KSK Electricity Financing India Pvt. Ltd. on 2018-04-01. Namratha Power Private Limited defaulted on the repayment of the loan, with the date of default being 2019-03-01. The total amount due as of the application date is Rs. 5,29,83,826. The respondent admitted to availing the loan and their

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

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

…

**Reasoning:** The Adjudicating Authority considered the pleadings and submissions of both parties. The

…

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

…

**Application:** In this case, the applicant provided evidence of the loan agreement, the deed

…

## Parties

- **Judges:** Sucharitha…; Satya Ranjan…
- **Appellants:** KSK Electricty…
- **Respondents:** Namratha Power…; Namratha Power…

## Timeline

- **2010-03-10 — ICD Agre…**: Loan given as Inter Corporate Deposit (ICD) by M/s. Wardha Power Corporation to Namratha…
- **2018-04-01 — Deed of Ass…**: Loan assigned from M/s. Wardha Power Corporation to KSK Electricity Financing India Pvt.…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/namratha-power-pvt-ltd-c-ib-no-244-cb-2020-21fb59cc