# In the matter of Katerra India Private Limited

> NCLT judgment dated 2023-09-08. Citation: TCN-2023-NCLT-01729. 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-01729
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/katerra-india-private-limited-9c55adf5

## Summary

### Background

Yes Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Katerra India Private Limited, alleging a default on a total outstanding amount of Rs. 493,34,21,103 as of March 26, 2022. The Financial Creditor, Yes Bank, claimed that Katerra India Private Limited failed to adhere to the repayment obligations under various loan facilities, leading to the account being classified as Non-Performing Asset (NPA) on June 23, 2022. The Financial Creditor issued a loan default/recall notice on February 27, 2023, declaring all amounts under the facilities immediately due and payable.

## Facts

Yes Bank Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Katerra India Private Limited, the Corporate Debtor. The Financial Creditor claimed a default 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 amended multiple times. The facilities included Overdraft, Term Loan, Bank Guarantee Performance, and Letter of Credit. The Corporate Debtor failed to adhere to the repayment obligations, leading to the account being classified as NPA on June 23, 2022. A loan default/recall notice was issued on

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## Issues and analysis

### Issue 1: Whether the petition filed by Yes Bank Limited under Section 7 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The Adjudicating Authority observed that the Financial Creditor had provided sufficient

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

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**Application:** In this case, Yes Bank Limited provided evidence of the default, and the

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## Parties

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

## Timeline

- **2003-11-21 — Incorporation of…**: Yes Bank Limited incorporated…
- **2013-07-25 — Incorporation of…**: Katerra India Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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