# In the matter of Raigarh Champa Rail Infrastructure Private Limited IA No. 1160-2020 in CP (IB) No. 187-7-HDB-2020

> NCLT judgment dated 2021-01-01. Citation: TCN-2021-NCLT-03429. The case involves a Company Application filed by Axis Bank Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 1 Jan 2021
- **Citation:** TCN-2021-NCLT-03429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raigarh-champa-rail-infrastructure-private-limited-ia-no-1160-2020-in-cp-ib-no-1-0f3a50a9

## Summary

### Background

The case involves a Company Application filed by Axis Bank Limited, the Financial Creditor, against Raigarh Champa Rail Infrastructure Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor extended a Rupee Loan Facility to the Corporate Debtor, which was later amended. The Corporate Debtor defaulted on payments, leading the Financial Creditor to issue a default notice. The Corporate Debtor is a Special Purpose Vehicle promoted by the KSK Group and is dependent on KMPCL for its revenues. Due to the cancellation of coal blocks allocated to KMPCL, the scope of the project was revised, leading to financial distress for the Corporate Debtor. During the pendency of the Company Petition, Axis Bank assigned

…

## Facts

Axis Bank Limited extended a Rupee Loan Facility to Raigarh Champa Rail Infrastructure Private Limited, which was later amended. The Corporate Debtor availed a Rupee Loan Facility, in an aggregate principal amount not exceeding Rs.990,00,00,000/- from the Financial Creditor. The Rupee Loan Facility was reduced to Rs.355,46,00,000/- vide an Amendment Agreement dated 15.03.2017. The Financial Creditor disbursed amounts totaling Rs.153,46,32,160/-. The total amount due and claimed as on 17.02.2020 is Rs.208,01,69,346.53/-. The Corporate Debtor defaulted in the payments of installments as per the repayment schedule on 30.11.2017. KSK Mahanadi Power Company Limited stood as Corporate Guarantor to the Corporate Debtor. Power Finance Corporation filed an Application numbered

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** The Hon'ble NCLAT's decisions provide guidance that the instant Application is

…

**Reasoning:** The Adjudicating Authority observed that the instant Application is maintainable based on

…

**Interpretation:** The legal issue concerns the maintainability of the application under Section 7

…

**Application:** The ratio and reasoning are applied to the specific facts of the case, leading

…

## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Axis Bank L…
- **Respondents:** Raigarh Champa…
- **Advocates:** S. R…; Trivi…

## Timeline

- **2014-02-14 — Rupee Loan Facility…**: Axis Bank Limited extended Rupee Loan Facility Agreement to Raigarh Champa Rail…
- **2017-03-15 — Amendment Ag…**: Rupee Loan Facility was reduced to…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/raigarh-champa-rail-infrastructure-private-limited-ia-no-1160-2020-in-cp-ib-no-1-0f3a50a9