# In the matter of Noida Medicare Centre Limited (IB) 2309 (ND)-2019

> NCLT judgment dated 2020-05-27. Citation: TCN-2020-NCLT-01311. Suraksha Asset Reconstruction Limited, acting as trustee of Suraksha ARC-012, filed an…

- **Court:** NCLT
- **Order date:** 27 May 2020
- **Citation:** TCN-2020-NCLT-01311
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/noida-medicare-centre-limited-ib-2309-nd-2019-8c792434

## Summary

### Background

Suraksha Asset Reconstruction Limited, acting as trustee of Suraksha ARC-012, filed an application under Section 7 of the IBC, 2016 to initiate the Corporate Insolvency Resolution Process (CIRP) against Noida Medicare Centre Limited, the Corporate Debtor. The Corporate Debtor had obtained credit facilities from Kotak Mahindra Bank (the original lender) but failed to maintain regular account activity, leading to defaults. The original lender declared the account as a Non-Performing Asset (NPA). Subsequently, Kotak Mahindra Bank assigned the debt to Suraksha Asset Reconstruction Limited via an assignment agreement dated 29.09.2017.

## Facts

Kotak Mahindra Bank (original lender) granted credit facilities to Noida Medicare Centre Limited (corporate debtor). The corporate debtor defaulted on loan repayments, leading Kotak Mahindra Bank to declare the account an NPA. Kotak Mahindra Bank assigned the debt to Suraksha Asset Reconstruction Limited (financial creditor) via an agreement dated 2017-09-29. The corporate debtor requested a loan restructuring, which was executed. The corporate debtor paid Rs. 33,50,000 as processing fees for the restructuring. The corporate debtor made a payment of Rs. 1,17,48,203 but later stopped payments due to disputes. The financial creditor claimed a principal amount of Rs. 9,02,67,946 plus interest at 20% p.a. was due from 2019-04-23. The corporate debtor argued the application

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## Issues and analysis

### Issue 1: Whether Suraksha Asset Reconstruction Limited is a Financial Creditor under Section 5(7) of the …

**Ratio:** Section 5(7) of the IBC, 2016 defines a 'financial creditor' as a person to whom a

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**Reasoning:** The court considered the assignment letter dated 29.09.2017, which demonstrated that

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**Interpretation:** The definition of 'financial creditor' is interpreted to include entities to

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**Application:** The court applied the definition of 'financial creditor' to the facts of the

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## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Kapal Kumar…
- **Appellants:** Suraksha Asset…
- **Respondents:** Noida Medicare…; M/s Noida…

## Timeline

- **2015-01-31 — Loan Disbur…**: Kotak Mahindra Bank disbursed a loan of Rs.…
- **2016-06-30 — Account Decla…**: Kotak Mahindra Bank declared the account of Noida Medicare Centre Limited as a…

## 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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