# In the matter of Presidium Educational Institution Private Limited IB-559-ND-2021

> NCLT judgment dated 2022-11-29. Citation: TCN-2022-NCLT-00300. The case involves an application filed by Yes Bank Limited under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Nov 2022
- **Citation:** TCN-2022-NCLT-00300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/presidium-educational-institution-private-limited-ib-559-nd-2021-67456893

## Summary

### Background

The case involves an application filed by Yes Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Presidium Educational Institution Private Limited. Yes Bank, the financial creditor, claims that Presidium Educational Institution, the corporate debtor, defaulted on loan repayments. The corporate debtor had approached Yes Bank for a loan facility to refinance an existing facility used for upgradation, renovation, and expansion of schools. Yes Bank sanctioned two term loans to the corporate debtor. Subsequently, Yes Bank assigned part of the loan to Aditya Birla Finance Limited. The corporate debtor was declared a Non-Performing Asset (NPA) due to non-payment of the term loans,

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## Facts

Presidium Educational Institution Private Limited (Corporate Debtor) approached Yes Bank Limited (Financial Creditor) for a loan facility to refinance an existing facility for upgradation, renovation, and expansion of schools. Yes Bank sanctioned two term loans to the Corporate Debtor under facility letter No. YLB/DEL/1805/2017-18 dated 30.12.2017. The Corporate Debtor executed a Loan Agreement dated 10.02.2018. Term Loan I (TL I) was for Rs. 63,500,000/-, and Term Loan II (TL II) was for Rs. 486,500,000/-. Subsequently, Yes Bank assigned Term Loan I and part of Term Loan II to Aditya Birla Finance Limited. On 29.09.2019, the Corporate Debtor was declared a Non-Performing Asset (NPA) due to non-payment of the term loans. Yes Bank issued a Loan Recall Notice on

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable given the corporate debtor's …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when the amount has

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**Reasoning:** The Adjudicating Authority considered the definition of 'default' under Section 3(12) of

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**Interpretation:** The term 'default' under Section 3(12) of the IBC is interpreted to mean

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**Application:** In this case, the Corporate Debtor failed to make payment of the loan amount,

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## Parties

- **Judges:** BACHU VENKAT…; BINOD KUMAR…
- **Respondents:** PRESIDIUM…
- **Advocates:** Sanjay…; Jai M…

## Timeline

- **2017-12-30 — Sanction…**: Yes Bank sanctioned two term loans to the Corporate Debtor vide facility letter No.…
- **2018-02-10 — Loan Agre…**: The Corporate Debtor executed a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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