# In the matter of Essel Corporate Resources Private Limited

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00822. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00822
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/essel-corporate-resources-private-limited-113a09c3

## Summary

### Background

The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for a financial debt of Rs. 107,59,58,558/-, with the date of default stated as January 1, 2020.

## Facts

STCI Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Essel Corporate Resources Private Limited, the Corporate Debtor. The petition sought resolution for a financial debt of Rs. 107,59,58,558/-, comprising a principal amount of Rs. 71,57,70,194/- and interest of Rs. 36,01,88,364/-. The stated date of default was January 1, 2020. The Financial Creditor sanctioned a corporate loan of Rs. 125,00,00,000/- to the Corporate Debtor on December 7, 2017, following an application. A Letter of Intent (LOI) dated March 1, 2018, outlined the terms, including a 36-month tenor from the first disbursement, quarterly interest payments at 9.25% per

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## Issues and analysis

### Issue 1: Whether the Financial Creditor's appropriation of funds from the sale of pledged shares towards the …

**Ratio:** A contract cannot be amended or modified except by an instrument in writing signed by

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**Reasoning:** The NCLT noted that the Facility Agreement, specifically clause 21.7, stipulated that no

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**Interpretation:** The court interpreted clause 21.7 of the Facility Agreement to mean that any

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**Application:** The NCLT applied this interpretation to the facts, concluding that the

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** STCI Finance…
- **Respondents:** Essel Corporate…
- **Advocates:** Ferzana Behramkamd…; Ashish…; +2 more

## Timeline

- **December 7, 2017 — Loan Appli…**: The Respondent applied…
- **March 1, 2018 — Letter of Inte…**: A Letter of Intent (LOI) was issued by the Petitioner sanctioning a Corporate Loan of Rs.…

## 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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