# In the matter of Resurgent Infratel Private Ltd. CP (IB) No. 506-KB-2017

> NCLT judgment dated 2017-11-21. Citation: TCN-2017-NCLT-00154. SREI Infrastructure Finance Limited, the financial creditor/applicant, filed an application…

- **Court:** NCLT
- **Order date:** 21 Nov 2017
- **Citation:** TCN-2017-NCLT-00154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/resurgent-infratel-private-ltd-cp-ib-no-506-kb-2017-31928519

## Summary

### Background

SREI Infrastructure Finance Limited, the financial creditor/applicant, filed an application under Section 7(1) of the Insolvency and Bankruptcy Code, 2016, against Resurgent Infratel Private Ltd., the corporate debtor/respondent. The application pertains to a term loan of Rs. 170 crores sanctioned by the financial creditor to the corporate debtor for telecom projects/investments, as per a sanction letter dated December 15, 2015. A loan agreement dated January 11, 2016, was executed between the parties. The corporate debtor defaulted on payments, leading to the application for initiation of a corporate resolution process.

## Facts

SREI Infrastructure Finance Limited sanctioned a term loan of Rs. 170 crores to Resurgent Infratel Private Ltd. on December 15, 2015, for telecom projects. A loan agreement was executed on January 11, 2016. Resurgent Infratel Private Ltd. defaulted on payments, with an outstanding amount of Rs. 80,74,52,914 as of March 24, 2017. The financial creditor, SREI Infrastructure Finance Limited, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate a corporate resolution process. The corporate debtor did not file any reply or objection. The application was supported by the sanction letter, loan agreement, and statements of account. The financial creditor proposed Mr. Rakesh Kumar Agarwal as the Interim Resolution Professional.

## Issues and analysis

### Issue 1: Whether the financial creditor has sufficiently proved that the corporate debtor committed default …

**Ratio:** The principle that a financial creditor must demonstrate the existence of a debt and

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**Reasoning:** The court relied on the financial creditor's evidence, including the loan agreement,

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**Interpretation:** Section 7 of the IBC requires the adjudicating authority to ascertain the

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**Application:** The court applied the ratio to the facts by examining the financial creditor's

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** SREI Infrastructur…
- **Respondents:** Resurgent…

## Timeline

- **2015-12-15 — Sanction Lett…**: Rs. 170 crores was sanctioned vide sanction Letter by the Financial Creditor to the…
- **2016-01-11 — Loan Agreeme…**: Loan agreement executed between the applicant…

## 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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