# In the matter of Raksha Multispeciality Hospital Private Limited CP (IB) 2532-MB-2019

> NCLT judgment dated 2019-11-18. Citation: TCN-2019-NCLT-00565. Yes Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLT-00565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raksha-multispeciality-hospital-private-limited-cp-ib-2532-mb-2019-5a7eab1f

## Summary

### Background

Yes Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Raksha Multispecialty Hospital Private Limited, the Corporate Debtor. The petition was based on the Corporate Debtor's alleged default in repaying loans amounting to ₹1,77,35,924/-. Yes Bank had granted various loan facilities to the Corporate Debtor, supported by documents including hospital loan agreements and vehicle loan agreements, along with demand promissory notes and irrevocable power of attorney. The bank also provided foreclosure reports, statements of accounts, and a Consumer Credit Information Report (CIBIL) reflecting the overdue amounts. The bank issued recall notices to the Corporate

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## Facts

Yes Bank Ltd. granted various loan facilities to Raksha Multispecialty Hospital Private Limited, totaling ₹2,15,06,463/-, supported by hospital loan agreements, vehicle loan agreements, demand promissory notes, and irrevocable power of attorney. The Corporate Debtor defaulted on loan repayments, leading to an outstanding amount of ₹1,77,35,924/-. Yes Bank issued recall notices to the Corporate Debtor demanding payment of the outstanding dues. The Corporate Debtor's counsel acknowledged the liability and default but raised an objection regarding ₹6,00,000/- received by Yes Bank from selling a vehicle, which was not appropriated towards the loan account. Yes Bank submitted foreclosure reports, statements of accounts, and a CIBIL report reflecting the overdue amounts. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Raksha Multispecialty Hospital Private Limited, defaulted in repaying …

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

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**Reasoning:** The Adjudicating Authority examined the documents submitted by Yes Bank, including loan

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial creditor

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**Application:** In this case, Yes Bank provided sufficient evidence of the loan facilities

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Yes Bank…
- **Respondents:** Raksha Multispecia…

## Timeline

- **2015-09-28 — Hospital Loan…**: Execution of Hospital Loan Agreement along with Demand Promissory Note and Irrevocable…
- **2017-04-28 — Hospital Loan…**: Execution of Hospital Loan Agreement along with Demand Promissory Note and Irrevocable…

## 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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