# In the matter of Indu Techzone Private Limited CP (IB) No. 207-7-HDB-2021

> NCLT judgment dated 2022-02-07. Citation: TCN-2022-NCLT-04223. Prudent ARC Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLT-04223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indu-techzone-private-limited-cp-ib-no-207-7-hdb-2021-5e4ac498

## Summary

### Background

Prudent ARC Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against Indu Techzone Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition contends that Indu Techzone defaulted on a debt of Rs. 131,94,41,832 as of May 31, 2021. Indu Techzone had availed a term loan facility of Rs. 60 crores from Infrastructure Development Finance Company Limited (IDFC) in 2008. Subsequently, a Common Rupee Loan Agreement was entered into with multiple lenders. IDFC assigned its rights to Edelweiss Asset Reconstruction Company Limited (EARC), which further assigned it to Prudent ARC Limited. A settlement was attempted, but Indu Techzone defaulted on the third tranche of payment.

## Facts

Indu Techzone Private Limited, engaged in setting up IT parks, availed a term loan of Rs. 60 crores from IDFC in 2008 under a Rupee Loan Agreement. A Common Rupee Loan Agreement for Rs. 160 crores was later entered into with multiple lenders. IDFC assigned its rights to EARC in 2013, who then assigned it to Prudent ARC Limited in 2020. Indu Techzone defaulted on its obligations, leading to its loan account being declared a Non-Performing Asset (NPA) in 2013. EARC filed OA No. 721 of 2015 before the Debts Recovery Tribunal (DRT) for recovery of Rs. 49,12,33,098 plus interest. A settlement was reached in 2018, where Indu Techzone agreed to pay Rs. 15,00,12,830 in three installments. Indu Techzone cleared the first two installments but defaulted on the third. Prudent ARC

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## Issues and analysis

### Issue 1: Whether this Tribunal, under its residuary power contained in Section 60 (5) (C) of I&B Code, …

**Ratio:** The residuary jurisdiction of NCLT under Section 60(5)(c) of IBC provides it a wide

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**Reasoning:** The NCLT reasoned that the Corporate Debtor admitted to availing the term loan of Rs. 60

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**Interpretation:** Section 60(5)(c) of the IBC grants the NCLT broad powers to adjudicate

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**Application:** The NCLT applied the principle that the Corporate Debtor was estopped from

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Prudent A…
- **Respondents:** Indu Techzone…

## Timeline

- **2008-09-08 — Rupee Loan Ag…**: Indu Techzone availed a term loan…
- **2009-02-27 — Common Rupee Loan…**: A Common Rupee Loan Agreement was entered into between Indu Techzone, IDFC, Andhra Bank,…

## 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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