# In the matter of Bright Solar Limited

> NCLT judgment dated 2023-10-11. Citation: TCN-2023-NCLT-01293. G.L.E. India Solar Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 11 Oct 2023
- **Citation:** TCN-2023-NCLT-01293
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bright-solar-limited-088ab5ed

## Summary

### Background

G.L.E. India Solar Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the corporate insolvency resolution process against Bright Solar Limited for a debt of Rs. 4,02,37,377. The debt included principal, interest, and penalty. The applicant claimed that a business agreement existed between one of its parent companies and the respondent, which was later cancelled by the respondent invoking force majeure. A master loan agreement was also in place, with a repayment schedule. The applicant further stated that Ningbo Green-Light Energy Group Company, the parent company, had extended a loan to the respondent, which was later assigned to the applicant.

## Facts

G.L.E. India Solar Private Limited (Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Bright Solar Limited (Respondent/Corporate Debtor) for a debt of Rs. 4,02,37,377, including principal, interest, and penalty. The applicant claimed a business agreement existed between its parent company and the respondent, which the respondent cancelled invoking force majeure. A master loan agreement was in place, dated 18.01.2022, with an 8-month repayment period, later extended. Ningbo Green-Light Energy Group Company (parent company) allegedly extended a loan of Rs. 2,80,65,305 on 20.09.2021 to the respondent, later assigned to the applicant. Ningbo provided loans on various dates in 2019 and 2020, totaling Rs. 3,65,26,305 towards

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## Issues and analysis

### Issue 1: Whether the applicant has provided sufficient evidence to prove the existence of a debt and default …

**Ratio:** The burden of proof lies on the applicant to establish the existence of a financial debt

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**Reasoning:** The NCLT observed that the applicant failed to provide sufficient evidence of disbursal

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**Interpretation:** The interpretation of Section 7 of the IBC, 2016 requires the applicant to

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**Application:** In this case, the applicant's failure to provide concrete evidence of loan

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** G.L.E India Solar…
- **Respondents:** Bright Solar…; Bright Sol…
- **Advocates:** Pranav Th…; Vishal…; +1 more

## Timeline

- **2022-02-25 — Application…**: G.L.E. India Solar Pvt. Ltd. filed an…
- **2021-09-27 — Demand Notice…**: M/s Spring (India) Law Firm issued a demand notice to the respondent on behalf of M/s…

## 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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