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

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02897. 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-02897
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arm-infra-utilities-private-limited-cp-ib-144-mb-2023-99735171

## 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 Arm Infra & Utilities Private Limited. The principal borrower

…

## Facts

IDBI Bank Limited, the Financial Creditor, filed an application under Section 7 of the IBC to initiate CIRP against Arm Infra & Utilities Private Limited, the Corporate Debtor, claiming a default of Rs. 165,45,83,259/- as of 08.12.2022. The Corporate Debtor provided a guarantee for credit facilities extended by IDBI Bank to Siti Networks Limited (erstwhile Wire and Wireless India Limited), the principal borrower. These facilities included a working capital facility and a term loan facility. The principal borrower defaulted on its obligations, leading IDBI Bank to recall the facilities and invoke the guarantee provided by the Corporate Debtor. The Financial Creditor issued notices to the Borrower on 19 June 2021 & 12th September, 2022 under Section 13(2) and

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring during a

…

**Reasoning:** The NCLT considered the arguments from both sides and examined the relevant documents. It

…

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

…

**Application:** The NCLT applied Section 10A to the facts of the case and concluded that the

…

## Parties

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

## Timeline

- **2008-11-01 — Initial Credit…**: Siti Networks Limited approached IDBI…
- **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-2023-99735171