# In the matter of Nisa Industrial Services Private Limited

> NCLT judgment dated 2025-03-11. Citation: TCN-2025-NCLT-00372. The Company Petition (IB) 129 (MB)/2024 was filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 11 Mar 2025
- **Citation:** TCN-2025-NCLT-00372
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nisa-industrial-services-private-limited-2b1be460

## Summary

### Background

The Company Petition (IB) 129 (MB)/2024 was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by The South Indian Bank Limited ("Financial Creditor/Petitioner") to initiate Corporate Insolvency Resolution Process (“CIRP”) against Nisa Industrial Services Private Limited (“Corporate Debtor/Respondent”). The petition was filed due to a default amount of Rs.6,09,34,982.93/- as on 01.01.2024. A Facility Agreement dated 29.09.2017 was executed between the Corporate Debtor and M/s. Clix Finance India, where Clix Finance India agreed to provide a term loan facility of an amount not exceeding Rs. 80,00,00,000/- in two tranches. A Novation Deed 20.02.2018 was executed between the Corporate Debtor and the Petitioner, where the Petitioner acquired the

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## Facts

The South Indian Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Nisa Industrial Services Private Limited due to a default of Rs.6,09,34,982.93 as of January 1, 2024. A Facility Agreement was executed on September 29, 2017, between Nisa Industrial Services and Clix Finance India, where Clix Finance India agreed to provide a term loan facility of up to Rs. 80,00,00,000 in two tranches. A Novation Deed was executed on February 20, 2018, between Nisa Industrial Services and The South Indian Bank Limited, where The South Indian Bank Limited acquired the rights and obligations of Clix Finance India for a term loan of Rs. 20,00,00,000. Nisa Industrial Services failed to repay the loan, leading The South

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 should be …

**Ratio:** The Adjudicating Authority must determine whether there is a debt and default, and if

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**Reasoning:** The Adjudicating Authority considered the facts and circumstances, including the default

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial

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**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor had

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## Parties

- **Judges:** LAKSHMI G…; Hariharan…
- **Appellants:** The South Indian…
- **Respondents:** Nisa Industrial…

## Timeline

- **2017-09-29 — Facility Ag…**: A Facility Agreement was executed between the Corporate Debtor and M/s. Clix Finance…
- **2018-02-20 — Novation…**: A Novation Deed was executed between the Corporate Debtor and the Petitioner,…

## 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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