# 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-01715. Axis Bank Limited, the Financial Creditor, filed a Company Petition (CP (IB) No.…

- **Court:** NCLT
- **Order date:** 13 Mar 2018
- **Citation:** TCN-2018-NCLT-01715
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sevenhills-healthcare-private-limited-cp-ib-no-282-7-hdb-2017-a981bb37

## 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 Corporate Debtor had requested financial assistance for setting up its hospital, leading to bilateral and consortium facilities from Axis Bank and other banks. Due to internal and external reasons, the Corporate Debtor faced financial strain, leading to liquidity issues and defaults in repayment. Axis Bank restructured the loans, but defaults persisted. The

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## Facts

Axis Bank Limited, a financial creditor, filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Sevenhills Healthcare Private Limited, a corporate debtor engaged in healthcare services. The corporate debtor had availed bilateral and consortium facilities from Axis Bank and other banks for setting up its hospital. Due to financial strain, the corporate debtor defaulted on its repayment obligations. Axis Bank restructured the loans, but defaults persisted, leading to the account being classified as a Non-Performing Asset (NPA). As of October 23, 2017, the outstanding amount was Rs. 737,58,06,619.20. The corporate debtor defaulted in making repayments towards both the bilateral and consortium facilities. The corporate debtor had created

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal noted that the Corporate Debtor had taken loans and defaulted on repayments.

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**Interpretation:** The interpretation of 'default' under Section 3(12) of the IBC requires that a

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**Application:** The Tribunal found that the Corporate Debtor had taken loans and defaulted on

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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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