# In the matter of PRIVILEGE HEALTH CARE SERVICES PRIVATE LIMITED

> NCLT judgment dated 2025-02-18. Citation: TCN-2025-NCLT-00478. Union Bank of India (Erstwhile Corporation Bank) filed a Company Petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 18 Feb 2025
- **Citation:** TCN-2025-NCLT-00478
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/privilege-health-care-services-private-limited-a09d7d34

## Summary

### Background

Union Bank of India (Erstwhile Corporation Bank) filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Privilege Healthcare Services Private Limited due to a default amount of Rs. 30,19,13,435.20 as of 31.03.2019. The Corporate Debtor had availed term loan facilities and import/inland LC/buyers credit facilities from the Financial Creditor. The Corporate Debtor's account was classified as NPA on 12.04.2016 due to failure to adhere to the terms of the sanction letter. The Corporate Debtor proposed settlement proposals which were initially accepted, and the CIRP was withdrawn under Section 12A of the IB Code. However, the Corporate Debtor failed to honor the settlement

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## Facts

Union Bank of India (Erstwhile Corporation Bank) sanctioned a term loan facility of Rs.28,00,00,000/- and Import/ Inland LC/ Buyers Credit as sublimit of Rs.77,00,000/- to Privilege Healthcare Services Private Limited. The Corporate Debtor executed various loan and security documents. The Corporate Debtor failed to adhere to the terms of the sanction letter, and its account was classified as Non-Performing Asset (NPA) on 12.04.2016. The Financial Creditor moved the DRT vide O.A. No.471/2019 for recovery of the outstanding debts. The Corporate Debtor proposed to settle the outstanding debt for Rs. 30.22 Crores, which the Financial Creditor approved. The Corporate Debtor again failed to pay, and proposed to settle the outstanding debt for Rs.34.12 Crores. The OTS was

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## Issues and analysis

### Issue 1: Whether the Company Petition can be revived after …

**Ratio:** The Hon'ble NCLAT in SRLK Enterprises LLP vs. Jalan Transolutions (India) Ltd. 2021 SCC

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**Reasoning:** The Tribunal considered that the Corporate Debtor had admitted its liability and default

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**Interpretation:** The interpretation of Section 12A of the IB Code and the effect of withdrawal

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**Application:** The ratio and reasoning apply to the specific facts of the case, where the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Union Bank of…
- **Respondents:** Privilege…

## Timeline

- **2013-09-20 — Sanction…**: Petitioner sanctioned term loan facility of Rs.28,00,00,000/- and Import/ Inland LC/…
- **2016-04-12 — Account Classified as…**: Corporate Debtor's account was…

## 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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