# In the matter of Palogix Infratructure Private Ltd.

> NCLT judgment dated 2017-05-16. Citation: TCN-2017-NCLT-00861. ICICI Bank Ltd., as a financial creditor, filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 16 May 2017
- **Citation:** TCN-2017-NCLT-00861
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/palogix-infratructure-private-ltd-ade0fd29

## Summary

### Background

ICICI Bank Ltd., as a financial creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Palogix Infrastructure Private Ltd. ICICI Bank had sanctioned a term loan of Rs. 111 crores to Palogix Infrastructure, out of which Rs. 65.60 crores was disbursed. The applicant stated that the amount in default as on December 31, 2016, was Rs. 32,21,97,699.06, with the first default occurring on June 26, 2016.

## Facts

ICICI Bank Ltd. sanctioned a term loan of Rs. 111 crores to Palogix Infrastructure Private Limited, with Rs. 65.60 crores disbursed. Palogix Infrastructure defaulted on the loan, with the first default occurring on June 26, 2016, and the amount in default as of December 31, 2016, being Rs. 32,21,97,699.06. ICICI Bank, as a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Palogix Infrastructure. The respondent raised objections based on a previous NCLAT judgment, arguing that the petitioner lacked proper authorization and failed to rectify mistakes within the given time. The delay in rectifying errors was due to a difference of opinion among the Bench

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process against the …

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

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**Reasoning:** The court found that the Corporate Debtor had committed a default in making payment of

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

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**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** V. P. S…; S. VIJAYARA…
- **Appellants:** ICICI Ban…
- **Respondents:** Palogix Infrastruc…

## Timeline

- **2016-06-26 — First De…**: Corporate Debtor committed first…
- **2016-12-31 — Amount in D…**: The amount in default…

## 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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