# In the matter of Green India Building Systems & Services Pvt. Ltd.

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03297. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/green-india-building-systems-services-pvt-ltd-2864f090

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/s Small Industries Development Bank of India (SIDBI) against M/s Green India Building Systems & Services Pvt. Ltd. seeking to initiate Corporate Insolvency Resolution Process (CIRP). SIDBI, acting as the Financial Creditor, claimed that the Corporate Debtor defaulted on a total amount of Rs. 6,67,71,411/-. The date of default was stated as 08.06.2017. The Corporate Debtor had approached SIDBI for various loan facilities, including venture loans, equity investments, and working capital loans, which were sanctioned after verifying the Corporate Debtor's credentials.

## Facts

M/s Small Industries Development Bank of India (SIDBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Green India Building Systems & Services Pvt. Ltd. SIDBI claimed that the Corporate Debtor defaulted on a total amount of Rs. 6,67,71,411/-, with the date of default being 08.06.2017. The Corporate Debtor had approached SIDBI for various loan facilities, including a venture loan of Rs. 100.00 lakh, OCD & Equity Investment of Rupees 100.00 lakh, and a Working Capital Loan of Rs. 200 Lakhs. SIDBI sanctioned a loan facility of Rs.1,00,00,000 under “Venture Debt-Startup Assistance Schemes for MSMEs', Rs. 1,00,00,000/- in the form of Optionally Convertible Debt (OCD)

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority noted that the records produced clearly showed that the

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**Interpretation:** The interpretation of 'default' under the IBC encompasses not only the failure

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**Application:** In this case, the Corporate Debtor's failure to repay the loan, coupled with

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** M/s Small…
- **Respondents:** M/s Green India…
- **Advocates:** Bharti Na…; Vishal Sh…; +1 more

## Timeline

- **2009-12-14 — Incorporation of…**: M/s Green India Building Systems & Services Pvt. Ltd. was incorporated as a Private…
- **2014-03-27 — Letter of…**: Letter of Intent dated 27th March, 2014, 24th September, 2014 and 25th February, 2016…

## 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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