# In the matter of Srei Infrastructure Finance Limited CP (IB) No. 295-KB-2021

> NCLT judgment dated 2021-10-08. Citation: TCN-2021-NCLT-00762. The Reserve Bank of India (RBI), as the Appropriate Regulator, filed an application under…

- **Court:** NCLT
- **Order date:** 8 Oct 2021
- **Citation:** TCN-2021-NCLT-00762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/srei-infrastructure-finance-limited-cp-ib-no-295-kb-2021-9d2d21cb

## Summary

### Background

The Reserve Bank of India (RBI), as the Appropriate Regulator, filed an application under Section 227 read with Section 239(2)(zk) of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Srei Infrastructure Finance Limited (SIFL), a Financial Service Provider (FSP). The application was filed due to defaults committed by SIFL in relation to financial debt availed from various financial creditors. UCO Bank intimated that SIFL defaulted on a working capital demand loan facility amounting to ₹165,56,30,967.99, with a principal amount of ₹150.00 crore and interest of ₹15,56,30,967.99. The RBI superseded the Board of Directors of SIFL and appointed Mr. Rajneesh Sharma as the Administrator.

## Facts

The Reserve Bank of India (RBI), acting as the Appropriate Regulator, filed a petition under Section 227 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Srei Infrastructure Finance Limited (SIFL), a Financial Service Provider (FSP). The RBI's application was based on SIFL's defaults in repaying financial debts to various creditors. UCO Bank reported that SIFL defaulted on a working capital demand loan facility amounting to ₹165,56,30,967.99, including a principal amount of ₹150.00 crore and interest of ₹15,56,30,967.99. The date of default for the principal sum was 13/02/2021, and for the interest amount, it was 01/11/2020. The RBI superseded SIFL's Board of Directors on 04/10/2021 and appointed Mr.

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## Issues and analysis

### Issue 1: Whether the present petition satisfies the ingredients of section 7 of the Code, requiring the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, stipulates the requirements for

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**Reasoning:** The Adjudicating Authority examined the documents and submissions made by the RBI,

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**Interpretation:** Section 7 requires the Adjudicating Authority to be satisfied that a debt

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**Application:** The Adjudicating Authority found that the documents placed on record prima

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Reserve Bank of…
- **Respondents:** SREI Infrastructur…

## Timeline

- **2020-11-01 — Date of Default…**: Date of default with reference to the…
- **2021-02-13 — Date of Default…**: Date of default with reference to repayment of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 239(2) — Power to make rules](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-239)

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