# In the matter of Jayneer Infrapower  & Multiventures Private Limited

> NCLT judgment dated 2024-10-25. Citation: TCN-2024-NCLT-00338. STCI Finance Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 25 Oct 2024
- **Citation:** TCN-2024-NCLT-00338
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayneer-infrapower-multiventures-private-limited-4994dcf0

## Summary

### Background

STCI Finance Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jayneer Infrapower & Multiventures Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for a corporate loan against collateral of liquid securities. A credit facility of Rs.125 Crore was provided vide Sanction Letter dated 01.03.2018. The Corporate Debtor failed to repay the dues, leading to the loan account being declared as NPA on 31.03.2020. The total debt as of 31.08.2022 was Rs.99,35,37,454/-.

## Facts

STCI Finance Limited (Financial Creditor) sanctioned a corporate loan of Rs.125 Crores to Jayneer Infrapower & Multiventures Private Limited (Corporate Debtor) for 36 months at 9.25% interest p.a. The loan was secured by Optionally Convertible Debentures (OCDs) and pledge of shares. Rs.100 Crore was disbursed on 16.03.2018 and Rs.25 Crore on 01.06.2018. The Corporate Debtor defaulted, and a notice for Event of Default and Recall of Loan was sent on 13.05.2019. The Corporate Debtor made part payments and consented to the sale of pledged shares. The Financial Creditor sold pledged shares between 31.07.2019 and 26.09.2019, adjusting the proceeds towards the outstanding debt. The Corporate Debtor defaulted again, and the loan account was declared NPA on 31.03.2020. The

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## Issues and analysis

### Issue 1: Whether the signatory to the Application has …

**Ratio:** The Power of Attorney and Board Resolution authorized Ms. Shamina Nasikwala, Chief

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**Reasoning:** The Tribunal examined the Board Resolution dated 28.01.2021 and the Power of Attorney

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**Interpretation:** The authorization granted to Ms. Shamina Nasikwala was sufficient to initiate

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**Application:** The Tribunal found no substance in the Corporate Debtor's submission that the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** STCI Finance…
- **Respondents:** JAYNEER INFRAPOWER…

## Timeline

- **2018-03-01 — Sanction…**: Credit facility of Rs.125 Crore was provided by the Financial Creditor to the Corporate…
- **2018-03-16 — First Disbu…**: Rs.100 Crore was disbursed…

## 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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