# In the matter of Sevenhills Healthcare Private Limited CP (IB) No. 282-7-HDB-2017

> NCLT judgment dated 2018-03-13. Citation: TCN-2018-NCLT-01712. Axis Bank Limited, the Financial Creditor, filed a Company Petition (CP (IB) No.…

- **Court:** NCLT
- **Order date:** 13 Mar 2018
- **Citation:** TCN-2018-NCLT-01712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sevenhills-healthcare-private-limited-cp-ib-no-282-7-hdb-2017-a8e3bcec

## Summary

### Background

Axis Bank Limited, the Financial Creditor, filed a Company Petition (CP (IB) No. 282/7/HDB/2017) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the IBC (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sevenhills Healthcare Private Limited, the Corporate Debtor. The Corporate Debtor is in the business of healthcare services. The Financial Creditor had advanced both Bilateral Facilities and Consortium Facilities to Sevenhills. The Corporate Debtor defaulted in making repayments, leading to its account being classified as a Non-Performing Asset. The Financial Creditor sought to invoke the pledge on the bilateral pledged shares, which was challenged by Mr. Jitendra Maganti and Maganti

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## Facts

Axis Bank Limited, a financial creditor, filed a petition against Sevenhills Healthcare Private Limited, a corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor is engaged in healthcare services. The financial creditor had extended both bilateral and consortium facilities to the corporate debtor. The corporate debtor defaulted in repayments, leading to its account being classified as a non-performing asset (NPA). The outstanding amount as of October 23, 2017, was Rs. 737,58,06,619.20. The financial creditor sought to invoke the pledge on the bilateral pledged shares, which was challenged by the corporate debtor. The matter reached the Supreme Court, which directed the corporate debtor to make payments, but no payment was

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## Issues and analysis

### Issue 1: Whether the alleged default in the instant case is crystallized as on date and accordingly the …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when whole or any part

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**Reasoning:** The Corporate Debtor contended that the alleged default was not crystallized as on date.

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**Interpretation:** The term 'default' under Section 3(12) of the IBC is interpreted to mean the

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**Application:** In this case, the Tribunal found that there was an admitted debt and a default

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## Parties

- **Judges:** Rajeswara Rao…
- **Appellants:** Axis Bank L…
- **Respondents:** SEVENHILLS…

## Timeline

- **1993-12-03 — Incorporation of Axis…**: Axis Bank Limited (Petitioner /…
- **2004-04-13 — Incorporation of Sevenhills Healthcare Private…**: Sevenhills Healthcare Private Limited (Respondent / Corporate Debtor/Company) was…

## 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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