# In the matter of Madhucon Projects Limited C.P. (IB) No.12-7-HDB-2021

> NCLT judgment dated 2023-03-29. Citation: TCN-2023-NCLT-04009. The case involves a petition filed by Srei Equipment Finance Limited under Section 7 of the…

- **Court:** NCLT
- **Order date:** 29 Mar 2023
- **Citation:** TCN-2023-NCLT-04009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhucon-projects-limited-cp-ib-no12-7-hdb-2021-aec6597c

## Summary

### Background

The case involves a petition filed by Srei Equipment Finance Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Madhucon Projects Limited, the Corporate Debtor, for defaulting on a debt of Rs. 100,05,77,347/-. The Corporate Debtor availed loan facilities from the Financial Creditor, and defaulted in timely servicing of the principal repayments and interest payments since October 15, 2018. The Corporate Debtor acknowledged the debt in its OTS proposals. The Corporate Debtor contended that the Financial Creditor cannot initiate CIRP due to the date of default being after March 25, 2020, relying on Section 10-A of IBC. The Corporate Debtor also argued that arbitration

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## Facts

M/s Srei Equipment Finance Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Madhucon Projects Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 100,05,77,347/-. The Corporate Debtor had availed loan facilities from the Financial Creditor, including a term loan of Rs. 40 crores under contract no. 149204 on 12.11.2017. The Corporate Debtor defaulted in timely servicing of the principal repayments and interest payments since October 15, 2018. The Financial Creditor sent various reminders and a demand notice dated 09.07.2020 demanding payment of Rs.60,93,35,049/- as on

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## Issues and analysis

### Issue 1: Whether a financial debt of a sum over rupees one crore is due and payable by the respondent to the …

**Ratio:** The Adjudicating Authority has merely to see the records of the information utility or

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**Reasoning:** The Tribunal relied on the ruling of the Hon'ble Supreme Court of India, in re,

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**Interpretation:** The legal position is that upon establishing the existence of a financial debt

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**Application:** The Tribunal found that the applicant financial creditor has successfully

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** SREI EQUIPMENT…
- **Respondents:** Madhucon Projects…

## Timeline

- **2017-11-12 — Loan Facility S…**: Credit facility sanctioned to the Corporate Debtor to the tune of Rs. 40 crores vide…
- **2017-12-26 — Loan Agre…**: Corporate Debtor entered into a loan…

## 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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