# In the matter of Arm Infra & Utilities Private Limited CP-IB-144-(MB)-2023

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02906. This case involves an application filed by IDBI Bank Limited, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 16 Jun 2023
- **Citation:** TCN-2023-NCLT-02906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arm-infra-utilities-private-limited-cp-ib-144-mb-2023-1ce9577f

## Summary

### Background

This case involves an application filed by IDBI Bank Limited, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) to initiate Corporate Insolvency Resolution Process (CIRP) against Arm Infra & Utilities Private Limited, the Corporate Debtor. The Financial Creditor claimed a default of Rs. 165,45,83,259/- as of 08.12.2022. The Corporate Debtor is engaged in building infrastructure for energy, telecommunications, transportation, and utilities. The Financial Creditor had provided working capital and term loan facilities to Siti Networks Limited (erstwhile Wire and Wireless India Limited), the principal borrower, which were secured by a guarantee from the Corporate Debtor. The borrower defaulted on its obligations,

…

## Facts

IDBI Bank Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Arm Infra & Utilities Private Limited (Corporate Debtor). The Financial Creditor claimed a default of Rs. 165,45,83,259 as of December 8, 2022. The Corporate Debtor provided a guarantee for credit facilities extended by IDBI Bank to Siti Networks Limited (Borrower). The Borrower defaulted on its obligations under the Working Capital Facility and Term Loan Facility. IDBI Bank issued notices to the Borrower and Corporate Debtor demanding payment. The Borrower's account was classified as a Non-Performing Asset (NPA) on December 29, 2019. IDBI Bank invoked the guarantee provided by

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC is barred by …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring on or

…

**Reasoning:** The Tribunal considered the arguments from both sides and analyzed the relevant

…

**Interpretation:** Section 10A provides a bar on initiating CIRP for defaults occurring during the

…

**Application:** In this case, the Tribunal determined that the default by the Corporate Debtor

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** IDBI Bank L…
- **Respondents:** Arm Infra &…

## Timeline

- **2008-11-01 — Borrower Approached…**: Siti Networks Limited (Borrower) approached IDBI Bank Limited (Financial Creditor) for…
- **2008-11-24 — Renewal Sancti…**: Financial Creditor issued a renewal sanction letter for a cash credit facility of Rs. 25…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arm-infra-utilities-private-limited-cp-ib-144-mb-2023-1ce9577f