# In the matter of Manjeera Constructions Limited

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-02475. Catalyst Trusteeship Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-02475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manjeera-constructions-limited-650e92ec

## Summary

### Background

Catalyst Trusteeship Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Manjeera Constructions Limited. The petition was based on the Corporate Debtor's default in making payments against a term loan facility. Manjeera Constructions Limited had entered into Development Agreements with the Andhra Pradesh Housing Board (APHB) for a project, and later approached Altico Capital India Limited for financial assistance, which sanctioned a term loan facility. Due to COVID-19, the repayment schedule was extended, but defaults continued. Altico assigned its rights to Catalyst Trusteeship Limited.

## Facts

Catalyst Trusteeship Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Manjeera Constructions Limited. The Corporate Debtor, Manjeera Constructions Limited, had entered into Development Agreements with Andhra Pradesh Housing Board (APHB) for project execution. To refinance the project, Manjeera Constructions Limited approached Altico Capital India Limited (Altico) for financial assistance. Altico sanctioned a term loan facility of Rs. 325,00,00,000/- vide a Facility Agreement dated 2018-08-13. Altico disbursed Rs. 274,80,00,000/- in two tranches. Subsequently, Altico assigned a portion of the facility (Rs. 25,00,00,000/-) to Fedbank. Due to COVID-19, Altico granted moratorium and relaxations to Manjeera

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## Issues and analysis

### Issue 1: Whether the application filed by Catalyst Trusteeship Limited under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority found that Catalyst Trusteeship Limited, as the assignee of

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**Interpretation:** Section 7 provides an enabling provision for financial creditors to initiate

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**Application:** The Adjudicating Authority applied Section 7 to the facts of the case, finding

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## Parties

- **Judges:** R. Ramalingam…; SH. CHARAN…
- **Appellants:** Catalyst Trusteesh…
- **Respondents:** Manjeera Construct…

## Timeline

- **2006-10-06 — Development Ag…**: Andhra Pradesh Housing Board (APHB) and Manjeera Constructions Limited entered into…
- **2006-11-22 — Development Ag…**: Andhra Pradesh Housing Board (APHB) and Manjeera Constructions Limited entered into…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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