# In the matter of PIoneer Gas Power Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03138. The case involves a petition filed by IFCI Limited under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pioneer-gas-power-limited-2118b4d1

## Summary

### Background

The case involves a petition filed by IFCI Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against Pioneer Gas Power Limited. IFCI Limited, the Financial Creditor, had sanctioned Term Loans I, II, III, and a Short-Term Priority Loan to Pioneer Gas Power Limited starting from 2010, totaling Rs. 436.45 Crores, of which Rs. 434.73 Crores was disbursed. The Corporate Debtor faced financial difficulties, leading to the loan being classified as Non-Performing Assets (NPA) on 31.03.2018. The total outstanding due amount as of 11.03.2021 was Rs. 713,90,77,418/-.

## Facts

IFCI Limited sanctioned Term Loans and a Short-Term Priority Loan to Pioneer Gas Power Limited from 2010 onwards, totaling Rs.436.45 Crores, with Rs.434.73 Crores disbursed. The Term Loans I and II were Rs.125.00 Crores each, payable at 11.50% per annum. These loans were restructured on 30.04.2015 for Rs.140.50 Crores. A Short Term Priority Loan of Rs.45.95 Crores was requested, with Rs.44.23 Crores availed on 30.06.2017. Pioneer Gas Power Limited created a 1st pari-passu charge on its assets. The loan was classified as NPA on 31.03.2018, acknowledged by the Corporate Debtor on 19.11.2020. The total outstanding due amount was Rs.713,90,77,418/- as of 11.03.2021. Pioneer Gas Power Limited contested the petition, citing gas allocation issues and government

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## Issues and analysis

### Issue 1: Whether the petition filed by IFCI Limited under Section 7 of the IBC for initiating CIRP against …

**Ratio:** The existence of debt and default is a prerequisite for an application under Section 7 of

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**Reasoning:** The NCLT considered the preliminary objections raised by the Corporate Debtor regarding

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

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**Application:** The NCLT found that the petitioner had met the requirements for filing a

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** IFCI…
- **Respondents:** Pioneer Gas Power…
- **Advocates:** Mr.V.V.S.…; B. Lokeshwa…

## Timeline

- **2010-01-01 — Loan San…**: IFCI Limited sanctioned Term Loans I, II, III and a Short-Term Priority Loan to Pioneer…
- **2015-04-30 — Loan Restru…**: Term Loans-I and II were restructured…

## 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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