# In the matter of Jaypee Healthcare Limited

> NCLT judgment dated 2024-06-14. Citation: TCN-2024-NCLT-01153. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Jun 2024
- **Citation:** TCN-2024-NCLT-01153
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaypee-healthcare-limited-b2793c5f

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Yes Bank Limited, later substituted by J.C. Flowers Asset Reconstruction Pvt. Ltd., against Jaypee Healthcare Limited (JHL), the Corporate Debtor. The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against JHL due to defaults in repayment of financial debts. The initial application was filed on 02.12.2019. Subsequent to the filing, an Interlocutory Application (IA No.146/2023) was filed on 23.03.2023 for substituting the name of the Applicant in favor of J.C. Flowers Asset Reconstruction Pvt Ltd. The debt was assigned as per assignment deed dated 16.12.2022 replacing Yes Bank Ltd. The total financial debt claimed to be in default is

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## Facts

Yes Bank Limited, later substituted by J.C. Flowers Asset Reconstruction Pvt. Ltd., filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jaypee Healthcare Limited (JHL), the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The total financial debt claimed to be in default is Rs.378,02,00,000 Crores, with the date of default being 01.02.2019. The debt arose from various loan facilities extended by Yes Bank to JHL, including term loans and a working capital facility. JHL defaulted on repayment of monthly interest and principal payments. The account of the Corporate Debtor was classified as NPA on 02.05.2019. The Lender Bank issued a loan recall notice dated 08.11.2019. JHL opposed the application,

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## Issues and analysis

### Issue 1: Whether there is debt and default …

**Ratio:** The existence of debt and default is a prerequisite for admitting an application under

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**Reasoning:** The Corporate Debtor admitted that credit facilities availed from the Financial Creditor

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**Interpretation:** The term 'debt' and 'default' under the IBC are interpreted to mean a financial

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**Application:** The tribunal found that the Corporate Debtor is admittedly in default on

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Yes Bank L…
- **Respondents:** Jaypee Healthcare…
- **Advocates:** Abhinav Va…; Anoop R…; +10 more

## Timeline

- **2019-12-02 — Application…**: Yes Bank Limited filed an application under Section 7 of the IBC to initiate CIRP against…
- **2023-03-23 — Substitution Ap…**: An Interlocutory Application (IA No.146/2023) was filed for substituting the name of the…

## 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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