# In the matter of Bhadreshwar Vidyut Private Limited CP (IB)-106(CHE)-2021

> NCLT judgment dated 2022-10-18. Citation: TCN-2022-NCLT-00699. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Oct 2022
- **Citation:** TCN-2022-NCLT-00699
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhadreshwar-vidyut-private-limited-cp-ib-106che-2021-183edb72

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bhadreshwar Vidyut Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a private limited company incorporated under the Companies Act, 1956. The Financial Creditor claimed dues including principal, interest, and bank guarantee totaling Rs. 3,63,67,59,436.42/-. The Corporate Debtor's loan accounts were classified as Non-Performing Assets (NPA) on 30.05.2019, with the date of default averred as 28.02.2019. Previously, Syndicate Bank, another financial creditor, had filed an application under Section 7 of IBC, 2016, against the same Corporate Debtor, which was later set aside by NCLAT.

## Facts

The State Bank of India (SBI), acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bhadreshwar Vidyut Private Limited, the Corporate Debtor. The Corporate Debtor is a private limited company involved in developing a thermal power project. The total cost of the project was initially estimated at Rs.1,640 crores, financed by a consortium led by Punjab National Bank, with SBI (formerly State Bank of Hyderabad) also participating. The Corporate Debtor availed term loan and working capital facilities from the consortium. The Corporate Debtor's accounts were classified as Non-Performing Assets (NPA) on 30.05.2019, with the date of default

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## Issues and analysis

### Issue 1: Whether there exists a 'financial debt' as defined …

**Ratio:** A 'financial debt' is a debt along with interest, if any, which is disbursed against the

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**Reasoning:** The Tribunal examined the term loan agreement dated 03.09.2013 between the Corporate

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**Interpretation:** The Tribunal interpreted the definition of 'financial debt' under the IBC,

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**Application:** The Tribunal applied the definition of 'financial debt' to the facts of the

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Respondents:** Bhadreshwar…

## Timeline

- **2013-09-03 — Term Loan Ag…**: Term loan agreement was entered into by the…
- **2015-06-30 — Repayment Sta…**: Corporate Debtor was required to repay the term loan in 40 Equal Quarterly Instalments of…

## 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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