# In the  matter of Privilege Healthcare Services Private Limited C.P. No.1902-&BP-2019

> NCLT judgment dated 2019-12-04. Citation: TCN-2019-NCLT-00323. The case involves a Company Petition filed by Corporation Bank against Privilege Healthcare…

- **Court:** NCLT
- **Order date:** 4 Dec 2019
- **Citation:** TCN-2019-NCLT-00323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/privilege-healthcare-services-private-limited-cp-no1902-bp-2019-94c5227b

## Summary

### Background

The case involves a Company Petition filed by Corporation Bank against Privilege Healthcare Services Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). Corporation Bank alleges that Privilege Healthcare Services Private Limited defaulted on payments amounting to Rs. 30,19,13,435/- under Section 7 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Corporation Bank filed a petition to initiate CIRP against Privilege Healthcare Services Private Limited, claiming a default of Rs. 30,19,13,435/-. Privilege Healthcare Services Private Limited, engaged in setting up healthcare facilities, had approached Corporation Bank for credit facilities. The bank sanctioned a Term Loan of Rs. 28.00 Crores and Import/Inland LC/Buyers credit of Rs. 77 Lac, totaling Rs. 28.77 Crores, sanctioned on 2016-03-19. Various loan and security documents were executed, including agreements, guarantees, and hypothecation deeds, all dated 2013-11-01. The Corporate Debtor failed to liquidate the dues despite reminders, leading to the account being classified as a Non-Performing Asset on 2016-03-31. A notice under Section 13(2) of the SARFAESI

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment to the extent of Rs. 30,19,13,435/- under …

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

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**Reasoning:** The Adjudicating Authority, upon reviewing the documents filed by the Creditor, found

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**Interpretation:** Section 7 provides the mechanism for creditors to initiate insolvency

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**Application:** The Corporate Debtor's admission of default, coupled with the Creditor's

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Corporatio…
- **Respondents:** Privilege…; M/s Privilege…

## Timeline

- **2013-11-01 — Agreement of T…**: Agreement of Term Loan…
- **2013-11-01 — Guarantee Ag…**: Guarantee Agreement was…

## 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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