# In the matter of I-vantage India Private Limited

> NCLT judgment dated 2024-07-08. Citation: TCN-2024-NCLT-01057. The Bank of Maharashtra, acting as the Financial Creditor, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 8 Jul 2024
- **Citation:** TCN-2024-NCLT-01057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/i-vantage-india-private-limited-7521a533

## Summary

### Background

The Bank of Maharashtra, acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against I-Vantage India Private Limited, the Corporate Debtor. The application stems from a default on a Cash Credit Facility and Guarantee Limit sanctioned to BS Limited, with I-Vantage acting as guarantor. The Financial Creditor claimed a total outstanding amount of Rs. 1,26,92,84,149/- as of 05.02.2023, including principal and interest. The Corporate Debtor contested the application, citing issues of authorization, non-submission of certified financial statements, and limitation.

## Facts

The Bank of Maharashtra sanctioned a Cash Credit Facility of Rs. 10,00,00,000/- and a Guarantee Limit of Rs. 40,00,00,000/- to BS Limited under a Working Capital Consortium Agreement dated 05.05.2015. I-Vantage India Private Limited acted as a guarantor by executing a Guarantee Deed on the same date. The principal borrower's account was classified as a Non-Performing Asset (NPA) on 15.07.2016. The total outstanding amount was Rs. 1,26,92,84,149/- as of 05.02.2023, including principal and interest. A Demand Notice under Section 13(2) of the SARFAESI Act was issued on 13.03.2017. The Debts Recovery Tribunal, Hyderabad, issued a Recovery Certificate bearing RC No. 262/2020 on 06.02.2020. The Financial Creditor filed an application under Section 7 of the IBC to initiate

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC was filed by a duly authorized representative of …

**Ratio:** As per the Notification No.SO 1091(E) dated 27.02.2019, specific persons/individuals are

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**Reasoning:** The NCLT examined Annexure 1 of the Application and Annexure 2 of the Rejoinder, which

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**Interpretation:** The court interpreted the authorization requirements under Section 7 of the IBC

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**Application:** The court found that the authorized signatory, being an Assistant General

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** I-Vantage India…

## Timeline

- **2015-05-05 — Sanction of Credit…**: Bank of Maharashtra sanctioned a Cash Credit Facility and Guarantee Limit to BS Limited,…
- **2016-07-15 — NPA Decla…**: The account of the principal borrower, BS Limited, was classified as a Non-Performing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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