# In the matter of Primat Infrapower & Multiventures Pvt Ltd

> NCLT judgment dated 2024-07-15. Citation: TCN-2024-NCLT-01004. Axis Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Jul 2024
- **Citation:** TCN-2024-NCLT-01004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/primat-infrapower-multiventures-pvt-ltd-0ace90f2

## Summary

### Background

Axis Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Primat Infrapower & Multiventures Private Limited, citing a default on a financial debt of INR 87,50,53,697.00. The corporate debtor filed I.A. No. 924/2023 objecting to the maintainability of the company petition, primarily arguing that the petition was barred by Section 10-A of the IBC due to the default occurring during the prohibited period. The Financial Creditor contended that defaults occurred both before and after the Section 10-A period, and the petition was within the limitation period.

## Facts

Axis Finance Limited sanctioned a loan of Rs. 100 crore to Primat Infrapower & Multiventures Private Limited (Corporate Debtor) on June 21, 2018, with a facility agreement executed on June 26, 2018. The loan tenor was 3 years, with interest at 10.35% p.a. payable quarterly. The loan was secured by a pledge of securities. The Corporate Debtor defaulted on interest payments, leading the Financial Creditor to issue letters in May and August 2020, demanding payment of outstanding amounts. The Financial Creditor claimed a default of Rs. 87,50,53,697.00. The Corporate Debtor argued that the petition was barred by Section 10-A of the IBC, citing different dates of default in the petition and information utility records. The Financial Creditor amended the NeSL report to

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## Issues and analysis

### Issue 1: Whether the present petition is barred by Section …

**Ratio:** Section 10-A of the IBC prohibits the initiation of CIRP for defaults occurring during

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**Reasoning:** The NCLT found that the Corporate Debtor had defaulted on interest payments prior to the

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**Interpretation:** Section 10-A provides a bar on initiating CIRP for defaults occurring during a

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**Application:** The NCLT applied the ratio to the facts by determining that the default

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Axis Finance…
- **Respondents:** Primat Infrapower…
- **Advocates:** Nausher…; Yash Dh…; +3 more

## Timeline

- **2018-06-21 — Loan Sanc…**: Axis Finance Limited sanctioned a loan of Rs. 100 crore to Primat Infrapower &…
- **2018-06-26 — Facility Agreement…**: Facility Agreement was executed between Axis Finance Limited and Primat Infrapower &…

## 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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