# In the matter of Neo Infrastructure Pvt. Ltd. C.P. No. (IB)-875(PB)-2018

> NCLT judgment dated 2019-02-01. Citation: TCN-2019-NCLT-05043. Bank of Baroda, the financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Feb 2019
- **Citation:** TCN-2019-NCLT-05043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/neo-infrastructure-pvt-ltd-cp-no-ib-875pb-2018-6b7e58a7

## Summary

### Background

Bank of Baroda, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Neo Infrastructure Private Limited, the corporate debtor. The financial creditor sought to trigger CIRP due to defaults on a term loan of Rs. 150 crores sanctioned on 18.06.2014 and 10.07.2014 for part financing of the 'BRYS BUZZ' residential housing project. The corporate debtor, acting as a co-borrower with Brys International Pvt. Ltd., defaulted on repayments, leading to the account being declared a Non-Performing Asset (NPA) on 31.12.2015. The financial creditor issued a notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of

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## Facts

Bank of Baroda sanctioned a term loan of Rs. 150 crores to Neo Infrastructure Private Limited on 18.06.2014 and 10.07.2014 for part financing of the 'BRYS BUZZ' residential housing project. Neo Infrastructure acted as a co-borrower with Brys International Pvt. Ltd. The corporate debtor defaulted on repayments, leading to the account being declared an NPA on 31.12.2015. The financial creditor issued a notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The corporate debtor issued Registration of Charge Form No. CHG-1 in favor of the Financial Creditor. The amount in default as on 31.12.2015 was Rs. 81,36,69,690.40/-. The Corporate Debtor sent a letter dated 27.10.2015 to the Financial

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## Issues and analysis

### Issue 1: Whether the Financial Creditor-Bank has succeeded to make out a case for triggering the Corporate …

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

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**Reasoning:** The NCLT found that the financial creditor had presented sufficient evidence of default,

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** The NCLT applied Section 7 of the IBC to the facts of the case and found that

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Bank of B…
- **Respondents:** Neo Infrastructure…

## Timeline

- **2014-06-18 — Sanction…**: Bank of Baroda sanctioned a…
- **2014-07-10 — Sanction…**: Bank of Baroda sanctioned a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 77 — Punishment for providing false information in…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-77)

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