# In the matter of Raj Transmission Engineering Limited CP (IB) No.59-Chd-CHD-2021

> NCLT judgment dated 2022-10-07. Citation: TCN-2022-NCLT-00830. Pegasus Assets Reconstruction Pvt. Ltd. filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Oct 2022
- **Citation:** TCN-2022-NCLT-00830
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raj-transmission-engineering-limited-cp-ib-no59-chd-chd-2021-86627836

## Summary

### Background

Pegasus Assets Reconstruction Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Raj Transmission Engineering Limited. The petition was based on the corporate debtor's default in repayment of debt. Allahabad Bank had earlier sanctioned and disbursed a debt to the corporate debtor, which was later restructured. The corporate debtor defaulted on the restructured loan, leading Allahabad Bank to file an Original Application before the Debts Recovery Tribunal (DRT). During the pendency of the OA, Allahabad Bank assigned the debt to the financial creditor, Pegasus Assets Reconstruction Pvt. Ltd. The corporate debtor executed a deed of settlement with the financial

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## Facts

Allahabad Bank sanctioned a debt of Rs.26,00,00,000/- to M/s Raj Transmission Engineering Limited on 21.08.2009, which was disbursed on the same date. The debt was restructured on 31.12.2012 to Rs.24,83,00,000/-. The corporate debtor defaulted, leading Allahabad Bank to file Original Application No.74/2012 on 01.01.2012 before the Debts Recovery Tribunal (DRT) to recover Rs.22,05,21,317.73 as on 31.01.2012. During the pendency of the OA, Allahabad Bank assigned the debt to Pegasus Assets Reconstruction Pvt. Ltd. on 27.09.2013. A deed of settlement was executed on 08.01.2014 for Rs.18,50,00,000/-, payable in 18 months. The DRT decreed the OA on 22.01.2014 in terms of the settlement. The corporate debtor made payments totaling Rs.3,67,40,000 between 04.04.2014 and

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## Issues and analysis

### Issue 1: Whether the present application …

**Ratio:** A judgment and/or decree for money in favor of the Financial Creditor, passed by the DRT,

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**Reasoning:** The DRT Chandigarh vide its order dated 25.05.2021 (Annexure A with IA No.539 of 2021)

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**Interpretation:** The Supreme Court's judgment in Civil Appeal No.1650 of 2020; Dena Bank (now

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**Application:** In this case, the Recovery Certificate was issued on 27.07.2021, and the

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## Parties

- **Judges:** HON’BLE MR.…; SUBRATA KUM…
- **Appellants:** M/s Pegasus…
- **Respondents:** M/s Raj Transmissi…

## Timeline

- **2009-08-21 — Debt Sanc…**: Allahabad Bank sanctioned a debt of…
- **2012-12-31 — Debt Restru…**: The debt was restructured…

## 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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