# In the matter of Noble Ispat & Energies Limited C.P. (IB) No. 137-BB-2019

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01789. The case involves a petition filed by Indian Renewable Energy Development Agency Limited…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/noble-ispat-energies-limited-cp-ib-no-137-bb-2019-14c34aab

## Summary

### Background

The case involves a petition filed by Indian Renewable Energy Development Agency Limited (IREDA) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Noble Ispat & Energies Limited. IREDA claims that Noble Ispat defaulted on a total principal outstanding amount of Rs. 14,02,00,000 as of 30.04.2018. IREDA, a Union Government Company and Public Financial Institution, had sanctioned a term loan to Noble Ispat for setting up a captive power plant. The loan agreement was executed on 09.05.2007, with a supplementary agreement on 31.07.2009. Noble Ispat issued postdated cheques to discharge its liability, but these were returned unpaid due to insufficient funds. IREDA initiated recovery

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## Facts

Indian Renewable Energy Development Agency Limited (IREDA) is a Union Government Company and Public Financial Institution. Noble Ispat & Energies Limited is a Public Limited Company, previously known as Noble Distilleries & Powers Limited. IREDA sanctioned a term loan of Rs. 21,30,00,000 to Noble Ispat for setting up an 8MW Captive Power Plant, with a sanction letter dated 21.03.2007. A loan agreement was executed on 09.05.2007, and a supplementary agreement on 31.07.2009. Noble Ispat defaulted on the loan, with a principal outstanding amount of Rs. 14,02,00,000 as of 30.04.2018. Postdated cheques issued by Noble Ispat were dishonored due to insufficient funds. IREDA classified Noble Ispat's account as a Non-Performing Asset (NPA) on 31.03.2012. IREDA initiated

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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 IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court relied on the judgment in M/s.Innoventive Industries Ltd Vs. ICICI Bank &

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

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**Application:** The court found that IREDA, as a financial creditor, had filed the application

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. Indian…
- **Respondents:** M/s. Noble Ispat…

## Timeline

- **1987-03-11 — IREDA Incorp…**: Indian Renewable Energy Development Agency Limited (IREDA) is incorporated under the…
- **1999-07-02 — Noble Ispat Incorporatio…**: Noble Ispat & Energies Limited is…

## 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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