# In the matter of Sai Infosystem (India) Ltd. CP (IB) No. 164-7-NCLT-AHM-2017

> NCLT judgment dated 2017-11-30. Citation: TCN-2017-NCLT-00118. Allahabad Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Nov 2017
- **Citation:** TCN-2017-NCLT-00118
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sai-infosystem-india-ltd-cp-ib-no-164-7-nclt-ahm-2017-01cd0770

## Summary

### Background

Allahabad Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sai Infosystem (India) Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The bank claimed that the corporate debtor had defaulted on repayment of financial facilities. The application was filed due to the corporate debtor's failure to repay a term loan of Rs. 50.00 Crores, part of a total TL requirement of Rs. 160.00 Crores, sanctioned to finance an Internet Data Centre (IDC) project. The bank had also issued sanction letters in 2012 and 2013 with various terms and conditions. Despite repeated reminders and the issuance of a demand notice under the SARFAESI Act, the corporate debtor failed to make payments, leading to the bank

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## Facts

Allahabad Bank, acting as the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sai Infosystem (India) Limited, the corporate debtor. The application was based on the corporate debtor's default in repaying financial facilities. The bank had sanctioned a term loan of Rs. 50.00 Crores to the corporate debtor, part of a total requirement of Rs. 160.00 Crores, to finance an Internet Data Centre (IDC) project. The bank issued sanction letters in 2012 and 2013 with specific terms and conditions. Despite repeated reminders and a demand notice under the SARFAESI Act, the corporate debtor failed to make payments. The bank declared the corporate debtor's account as NPA on 21.10.2013. The total outstanding amount due was

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## Issues and analysis

### Issue 1: Whether a default has occurred in repayment of …

**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 the applicant bank,

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**Interpretation:** The term 'default' under Section 3(12) of the IBC means non-payment of debt

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**Application:** The corporate debtor, Sai Infosystem (India) Limited, failed to repay the term

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** Allahabad…
- **Respondents:** Sai Infosystem…
- **Advocates:** Kshama…; Sunil Bh…

## Timeline

- **2011-04-18 — Sanction Lett…**: Sanction letter dated 18/19.4.2011 to part…
- **2012-09-18 — Sanction Lett…**: Applicant Bank issued a Sanction Letter dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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