# In the matter of Ansal API Infrastructure Limited IA 6034(PB)-2021 in Company Petition No. IB- 1641(PB)-2018

> NCLT judgment dated 2022-12-19. Citation: TCN-2022-NCLT-00110. Union Bank of India (formerly Corporation Bank) filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Dec 2022
- **Citation:** TCN-2022-NCLT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ansal-api-infrastructure-limited-ia-6034pb-2021-in-company-petition-no-ib-1641pb-b1fa62cb

## Summary

### Background

Union Bank of India (formerly Corporation Bank) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ansal API Infrastructure Limited, the Corporate Debtor. The petition was based on the Corporate Debtor's alleged default in making a payment of Rs. 11,98,39,698 as of 31.10.2018, comprising Rs. 10,20,60,066 as principal and Rs. 1,77,79,632 as interest. The Corporate Debtor was incorporated on 03.06.2008. The Corporate Debtor had approached PMDO Lenders (Pooled Municipal Debt Obligation) for a loan, which was sanctioned. Various agreements were executed on 05.07.2011, including a Common Loan Agreement (CLA), a Security Trustee Agreement, and a Trust and Retention Account

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## Facts

Union Bank of India (formerly Corporation Bank) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Ansal API Infrastructure Limited. The petition was based on the Corporate Debtor's alleged default in making a payment of Rs. 11,98,39,698 as of 31.10.2018, comprising Rs. 10,20,60,066 as principal and Rs. 1,77,79,632 as interest. The Corporate Debtor was incorporated on 03.06.2008. The Corporate Debtor had approached PMDO Lenders (Pooled Municipal Debt Obligation) for a loan, which was sanctioned, aggregating to Rs. 393.40 Crores vide a sanction letter dated 23.06.2011. Various agreements were executed on 05.07.2011, including a Common Loan Agreement (CLA), a Security

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## Issues and analysis

### Issue 1: Whether the Applicant qualifies as a Financial …

**Ratio:** Section 5(7) of the IBC, 2016, defines a 'Financial Creditor' as any person to whom a

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**Reasoning:** The Adjudicating Authority found that there was no direct disbursal of the loan by the

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**Interpretation:** The definition of 'Financial Creditor' requires a direct financial debt owed to

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**Application:** Since there was no direct disbursal or agreement between the Applicant and the

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Union Bank of…
- **Respondents:** ANSAL API…

## Timeline

- **2008-06-03 — Incorporation of…**: Ansal API Infrastructure Limited was…
- **2011-06-23 — Sanction…**: A term loan aggregating to Rs. 393.40 Crores was sanctioned to the Corporate Debtor vide…

## 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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