# In the matter of Punj Lloyd Upstream Limited C.P. No. (IB)-1322(PB)-2018

> NCLT judgment dated 2019-05-13. Citation: TCN-2019-NCLT-03321. The International Finance Corporation filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 May 2019
- **Citation:** TCN-2019-NCLT-03321
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/punj-lloyd-upstream-limited-cp-no-ib-1322pb-2018-1f8e0b85

## Summary

### Background

The International Finance Corporation filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Punj Llyod Upstream Limited, referred to as the 'Corporate Debtor'. The Corporate Debtor is registered under the Companies Act, 1956, incorporated on April 4, 2007. A loan agreement dated June 6, 2008, was entered into between the Financial Creditor and the Corporate Debtor for a grant of USD 25,000,000, guaranteed by Punj Lloyd Limited. The loan was to be disbursed in two tranches, with the first tranche of USD 12,500,000 drawn on November 19, 2008, and April 2, 2009. The second tranche was formally cancelled on March 19, 2015. The Corporate Insolvency Resolution Process was initiated against the

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## Facts

International Finance Corporation (IFC) extended loan facilities to Punj Llyod Upstream Limited (PLUL), the Corporate Debtor. The loan agreement was dated June 6, 2008, for USD 25,000,000. Punj Lloyd Limited (PLL) acted as the guarantor for the loan. The loan was to be disbursed in two tranches. The first tranche of USD 12,500,000 was drawn on November 19, 2008, and April 2, 2009. The second tranche was cancelled on March 19, 2015, at the request of the Corporate Debtor. PLL, the guarantor, is undergoing Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank Limited. IFC also filed a petition against PLL, which was disposed of due to the ongoing CIRP. IFC lodged its claim with the IRP of PLL. The total amount in default as of September 17, 2018, was USD

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## Issues and analysis

### Issue 1: Whether the same claim can be made the basis for filing an application under Section 7 of the …

**Ratio:** Once a claim is admitted under Section 7 against one Corporate Debtor (either Principal

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**Reasoning:** The court relied on the NCLAT's decision in Dr. Vishnu Kumar Agarwal v. M/s. Piramal

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code allows a Financial Creditor to

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**Application:** In this case, the International Finance Corporation had already filed its claim

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** International…
- **Respondents:** Punj Llyod…
- **Advocates:** Arun Kath…; K. Da…; +10 more

## Timeline

- **2007-04-04 — Incorporation of…**: Punj Llyod Upstream Limited was…
- **2008-06-06 — Loan Agre…**: International Finance Corporation and Punj Llyod Upstream Limited entered into a loan…

## 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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