# In the matter of Radius Infra Holdings Private Limited CP (IB) No.1123-MB-IV-2021

> NCLT judgment dated 2022-05-09. Citation: TCN-2022-NCLT-02808. This case involves an application filed by YES Bank Limited, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 9 May 2022
- **Citation:** TCN-2022-NCLT-02808
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radius-infra-holdings-private-limited-cp-ib-no1123-mb-iv-2021-5df98bb7

## Summary

### Background

This case involves an application filed by YES Bank Limited, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), against Radius Infra Holdings Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application pertains to defaults in loan repayments guaranteed by the Corporate Debtor for loans sanctioned to E-Commerce Magnum Solution Ltd. and Raghuleela Builders Private Limited. The Financial Creditor claims a total default of Rs.322,01,35,899/- and Rs.377,46,88,284/-. The Corporate Debtor has contested the application, citing pre-existing disputes, the Financial Creditor's knowledge of these disputes, and the Corporate Debtor's solvency. The Corporate Debtor also

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## Facts

YES Bank Limited, the Financial Creditor, filed an application under Section 7 of the I&B Code against Radius Infra Holdings Private Limited, the Corporate Debtor, seeking to initiate CIRP. The Corporate Debtor had provided guarantees for loans sanctioned to E-Commerce Magnum Solution Ltd. (Borrower 1) and Raghuleela Builders Private Limited (Borrower 2). The Financial Creditor sanctioned Rs.500 crore to E-Commerce Magnum Solution Ltd., out of which Rs.283 crore was disbursed, and Rs.300 crore to Raghuleela Builders Pvt Ltd, which was fully disbursed. The Financial Creditor claimed defaults of Rs.322,01,35,899/- from Borrower 1 and Rs.377,46,88,284/- from Borrower 2. The date of default was mentioned as 01.09.2019 for Borrower 1 and 01.02.2019 for Borrower 2. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the I&B Code against …

**Ratio:** Section 7 of the I&B Code allows a Financial Creditor to initiate CIRP against a

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**Reasoning:** The NCLT relied on the Supreme Court's observations in Laxmi Pat Surana V. Union Bank of

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**Interpretation:** The interpretation of Section 7 and Section 5(5A) of the I&B Code, along

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**Application:** In this case, Radius Infra Holdings Private Limited acted as a Corporate

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** Yes Bank L…
- **Respondents:** Radius Infra…

## Timeline

- **2018-09-28 — Sanction…**: Financial Creditor issued sanction letter for two term loans to Borrower I (E-Commerce…
- **2018-11-28 — Deed of Gua…**: Corporate Debtor executed Deed of Guarantee in favour of the Financial Creditor for the…

## 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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