# In the matter of Pratyush Infrastructure Private Limited

> NCLT judgment dated 2023-11-23. Citation: TCN-2023-NCLT-00599. M/S SREI Equipment Finance Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Nov 2023
- **Citation:** TCN-2023-NCLT-00599
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pratyush-infrastructure-private-limited-878afa18

## Summary

### Background

M/S SREI Equipment Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Pratyush Infrastructure Private Limited due to a default in repayment of debt amounting to Rs. 30,71,09,916. The Corporate Debtor failed to appear before the Tribunal despite service of notice, leading to an ex-parte order.

## Facts

M/S SREI Equipment Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Pratyush Infrastructure Private Limited (Corporate Debtor). The Corporate Debtor requested a loan facility of Rs. 17,00,00,000, which was granted by the Financial Creditor. A sanction letter was issued on April 1, 2019, followed by a loan agreement dated April 5, 2019. The entire sanctioned amount was disbursed in three tranches on April 10, 2019. The Corporate Debtor failed to repay the amounts due, leading the Financial Creditor to issue a demand notice on September 19, 2022. The Corporate Debtor failed to respond or take steps towards repayment. The date of default

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC requires the applicant to establish that there is a financial debt

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**Reasoning:** The Tribunal was satisfied that the present application was complete in all respects and

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**Interpretation:** Section 7 of the IBC provides the framework for initiating CIRP by a financial

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**Application:** The Tribunal applied the provisions of Section 7 to the facts of the case,

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## Parties

- **Judges:** SHRI. BACHU…; SHRI. RAHUL…
- **Appellants:** M/s. SREI…
- **Respondents:** M/S PRATYUSH…

## Timeline

- **2019-04-01 — Sanction Lette…**: Financial Creditor issued a sanction letter to…
- **2019-04-05 — Loan Agreement…**: Financial Creditor and Corporate…

## 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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