# In the matter of Green Valley Energy Ventures Private Limited

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02908. ALD Automotive Private Limited, the Operational Creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/green-valley-energy-ventures-private-limited-bbc5ed05

## Summary

### Background

ALD Automotive Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Green Valley Energy Ventures Private Limited, the Corporate Debtor, for defaulting on payments related to a Master Lease Agreement (MLA) for leased vehicles. The Corporate Debtor had been making payments until November 2019, after which defaults began due to insufficient balance. Despite multiple opportunities to restructure the debt, the Corporate Debtor failed to make payments, leading to the Operational Creditor terminating the MLA and issuing a demand notice. The Corporate Debtor raised objections, including the inclusion of amounts falling under Section 10A of the IBC and alleging defects in the leased vehicles.

## Facts

ALD Automotive Private Limited (Operational Creditor) and Green Valley Energy Ventures Private Limited (Corporate Debtor) entered into a Master Lease Agreement (MLA) on May 28, 2019, for the lease of vehicles. The Operational Creditor leased 105 vehicles to the Corporate Debtor. The Corporate Debtor made payments until November 2019 via Electronic Clearing System (ECS), after which payments defaulted due to insufficient balance. The Operational Creditor sent emails on March 24, 2020, and August 1, 2020, regarding the outstanding debts. The Corporate Debtor responded on August 4, 2020, expressing inability to pay and requesting restructuring. The Operational Creditor forfeited fixed deposits amounting to Rs. 42,47,995.94 on May 28, 2021, and demanded Rs. 60,43,000. The

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## Issues and analysis

### Issue 1: Whether the date of default falls within …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring during the

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**Reasoning:** The court considered the Operational Creditor's submission that the Corporate Debtor

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**Interpretation:** The court interpreted the continuous default as originating before the Section

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**Application:** The court applied this interpretation to the facts, finding that the initial

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** ALD Automotive…
- **Respondents:** Green Valley…

## Timeline

- **2019-05-28 — Master Lease A…**: ALD Automotive and Green Valley Energy Ventures entered into a Master Lease Agreement…
- **2019-11-01 — Default in P…**: Green Valley Energy Ventures…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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