# In the matter of Prius Commercial Projects Private Limited C.P. No. IB-1404-(ND)-2019

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-02010. Axis Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-02010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prius-commercial-projects-private-limited-cp-no-ib-1404-nd-2019-1b8e547c

## Summary

### Background

Axis Bank filed an application 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, for initiating the Corporate Insolvency Resolution Process (CIRP) against Prius Commercial Projects Private Limited, the Corporate Debtor. The financial creditor, Axis Bank, had extended a credit facility of Rs. 424 Crores to the Corporate Debtor for securitization of lease rentals receivables from a property in Saket, New Delhi. The facility was later reduced to Rs. 99,71,14,625/- due to assignment to third parties. The entire amount was disbursed in two tranches on March 31, 2015. A separate proceeding in the Delhi High Court, OMP (EFA) (COMM) 6 of 2016, restrained the

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## Facts

Axis Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Prius Commercial Projects Private Limited, the Corporate Debtor. A credit facility of Rs. 424 Crores was availed by the Corporate Debtor for securitization of lease rentals receivables from a property in Saket, New Delhi. The facility was later reduced to Rs. 99,71,14,625/-. The entire amount was disbursed in two tranches on March 31, 2015. An order dated November 13, 2018, passed by the Delhi High Court in OMP (EFA) (COMM) 6 of 2016, restrained the Corporate Debtor from transferring or creating third-party interests in its immovable properties. This restraint constituted an event of

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## Issues and analysis

### Issue 1: Whether the application filed by Axis Bank under Section 7 of the Insolvency and Bankruptcy Code, …

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

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**Reasoning:** The court considered the documents filed by the Financial Creditor, including the loan

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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 Axis Bank, being a financial creditor, had filed the

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** AXIS…
- **Respondents:** Prius Commercial…
- **Advocates:** Aditi M…; Anandh Venkatarama…

## Timeline

- **2015-03-31 — Disbursement of Credit…**: The Financial Creditor disbursed the…
- **2018-11-13 — Delhi High Cou…**: The Delhi High Court passed an order restraining the Corporate Debtor from transferring…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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