# In the matter of Katerra India Private Limited

> NCLT judgment dated 2023-09-08. Citation: TCN-2023-NCLT-01735. Yes Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 8 Sept 2023
- **Citation:** TCN-2023-NCLT-01735
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/katerra-india-private-limited-5b5bef2f

## Summary

### Background

Yes Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Katerra India Private Limited. The petition was based on the ground that Katerra India Private Limited had defaulted on a total outstanding amount of Rs.493,34,21,103/- as of March 26, 2022. The Financial Creditor, Yes Bank Limited, had sanctioned loan facilities to the Corporate Debtor, Katerra India Private Limited, for an amount of Rs.580,0000,000 vide Facility Letter dated June 29, 2018, which was amended from time to time. The Corporate Debtor failed to adhere to the repayment obligations, leading to its account being classified as a Non-Performing Asset (NPA) on June 23, 2022. Yes Bank issued

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## Facts

Yes Bank Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Katerra India Private Limited, the Corporate Debtor. The basis for the petition was the Corporate Debtor's default on a total outstanding amount of Rs.493,34,21,103/- as of March 26, 2022. Yes Bank had sanctioned loan facilities amounting to Rs.580,0000,000 to Katerra India Private Limited under a Facility Letter dated June 29, 2018, which was subsequently amended. The Corporate Debtor failed to meet its repayment obligations, leading to its account being classified as a Non-Performing Asset (NPA) on June 23, 2022. Yes Bank issued a loan default/recall notice on February 27, 2023,

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## Issues and analysis

### Issue 1: Whether the present petition is complete and having established the default in payment of the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court observed that the Financial Creditor had provided sufficient evidence to

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**Interpretation:** The court interpreted Section 7 of the IBC to mean that if a financial creditor

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**Application:** The court applied this interpretation to the facts of the case, noting that Yes

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Yes Bank L…
- **Respondents:** Katerra India…

## Timeline

- **2018-06-29 — Facility Lett…**: Yes Bank sanctioned loan facilities to Katerra…
- **2022-03-26 — Date of D…**: Katerra India Private Limited defaulted on a total outstanding amount of…

## 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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