# In the matter of Perpetual Capital and Servicing Private Limited CP (IB) 3640-MB-C-I-2019

> NCLT judgment dated 2022-08-12. Citation: TCN-2022-NCLT-01379. The case involves a petition filed by Religare Finvest Limited under Section 7 of the…

- **Court:** NCLT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLT-01379
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/perpetual-capital-and-servicing-private-limited-cp-ib-3640-mb-c-i-2019-a38b8518

## Summary

### Background

The case involves a petition filed by Religare Finvest Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Perpetual Capital and Servicing Private Limited, the Corporate Debtor, due to default in repayment of a loan. The Petitioner, Religare Finvest Limited, had sanctioned a loan to the Corporate Debtor, and the Corporate Debtor defaulted in repayment. A settlement agreement was entered into between the parties, but disputes arose, leading to the filing of the petition.

## Facts

Religare Finvest Limited (Financial Creditor/Petitioner) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Perpetual Capital and Servicing Private Limited (Corporate Debtor/Respondent). The Corporate Debtor had approached the Petitioner for a loan of 36 months in 2015. The Petitioner sanctioned Rs. 225,00,00,000/- on 08.06.2015 against pledge of shares and optionally fully convertible debentures, leading to a loan agreement dated 20.06.2015. An interest rate of 12% per annum was payable half-yearly. On 30.12.2015, an additional Rs. 35,00,00,000/- was sanctioned, raising the term loan to Rs. 260,00,00,000/-, with Rs. 228,75,00,000/- disbursed. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted on its repayment

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

…

**Application:** The Corporate Debtor's failure to repay the loan amount, as evidenced by the

…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Religare Finvest…
- **Respondents:** Perpetual Capital…

## Timeline

- **2015-06-08 — Loan Sanc…**: Petitioner sanctioned a loan amount of…
- **2015-06-20 — Loan Agre…**: Loan agreement entered into between…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/perpetual-capital-and-servicing-private-limited-cp-ib-3640-mb-c-i-2019-a38b8518