# In the matter of Bhadragiri Power Private Limited C.P. (IB) No. 47-BB-2022

> NCLT judgment dated 2022-12-02. Citation: TCN-2022-NCLT-00245. The Indian Renewable Energy Development Agency Limited (Financial Creditor) filed a Company…

- **Court:** NCLT
- **Order date:** 2 Dec 2022
- **Citation:** TCN-2022-NCLT-00245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhadragiri-power-private-limited-cp-ib-no-47-bb-2022-72d1bed1

## Summary

### Background

The Indian Renewable Energy Development Agency Limited (Financial Creditor) filed a Company Petition under Section 7 of the IBC, 2016, r/w Rule 4 of the I&B (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bhadragiri Power Private Limited (Corporate Debtor). The Corporate Debtor had approached the Financial Creditor for a loan to set up a 3 MW Gondi Small Hydro Project. A term loan of Rs. 13,87,50,000/- was sanctioned. A loan agreement was executed, and Rs. 13,59,30,259/- was disbursed. The Corporate Debtor defaulted, leading to its account being declared NPA on 31.03.2012. The Financial Creditor issued recall notices and demand notices to the Corporate Debtor and its guarantors. The Corporate Debtor acknowledged its

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## Facts

The Corporate Debtor, Bhadragiri Power Private Limited, approached the Financial Creditor, Indian Renewable Energy Development Agency Limited, for a loan to establish a 3 MW Gondi Small Hydro Project. The Financial Creditor sanctioned a term loan of Rs. 13,87,50,000/- on 05.12.2007. A loan agreement was executed on 12.03.2008, and Rs. 13,59,30,259/- was disbursed between March 2008 and December 2009. The interest terms were modified on 27.10.2008. The Financial Creditor rescheduled the repayment period until 30.09.2021 and agreed to fund the interest due from June 2010 to September 2011, amounting to Rs. 2,97,23,000/-. The Corporate Debtor's account was declared NPA on 31.03.2012. The Financial Creditor issued a recall notice on 09/13.08.2012 and demanded Rs.

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## Issues and analysis

### Issue 1: Whether the present petition is complete and having established the default in payment of the …

**Ratio:** Section 7 of the IBC, 2016, allows for the initiation of the Corporate Insolvency

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**Reasoning:** The court found that the petition was complete and that the Corporate Debtor had

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

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**Application:** The court applied Section 7 of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** KISHORE VEMULAPALL…; Manoj Kumar…
- **Appellants:** Indian Renewable…
- **Respondents:** Bhadragiri Power…

## Timeline

- **2007-12-05 — Sanction of T…**: Financial Creditor sanctioned a term loan of…
- **2008-03-12 — Loan Agre…**: Loan agreement executed between the…

## 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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