# In the matter of Delco Infrastructure Projects Ltd. I.A.-1852-ND-2022 in (IB)-444(ND)-2020

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02171. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/delco-infrastructure-projects-ltd-ia-1852-nd-2022-in-ib-444nd-2020-7c74ecde

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Intec Capital Limited (the financial creditor) against Delco Infrastructure Projects Ltd. (the corporate debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). Intec Capital Limited, a Non-Banking Financial Company, claimed that Delco Infrastructure Projects Ltd. defaulted on loan repayments under three loan agreements. The corporate debtor raised objections, including disputes over the date of default, the NPA classification, and the completeness of the financial creditor's documentation. The financial creditor argued that a default had occurred and that the application met the requirements of the IBC.

## Facts

Intec Capital Limited, a Non-Banking Financial Company, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Delco Infrastructure Projects Ltd. Delco Infrastructure Projects Ltd. allegedly defaulted on loan repayments under three loan agreements with Intec Capital Limited. The loan agreements were executed on different dates, with varying disbursement amounts and EMI schedules. The applicant provided loan facility to the respondent corporate debtor and entered into 3 loan agreements. The corporate debtor failed to maintain adequate amounts in its bank account, leading to dishonored cheques and ACH mandates. The applicant sent separate notices dated 01.10.2019 to the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court relied on Section 7(1) of the Code, which enables a financial creditor to file

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

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**Application:** The court found that the applicant, Intec Capital Limited, had provided

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## Parties

- **Judges:** Sh. Dharminder…; SUMITAPURKA…
- **Appellants:** M/s Intec Capital…
- **Respondents:** M/s Delco…

## Timeline

- **2016-01-01 — Insolvency and…**: The Insolvency and…
- **2016-03-04 — Loan Agree…**: Loan Agreement LNPIT02215-160006539…

## 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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