# In the matter of Sahara India Medical Institute Limited

> NCLT judgment dated 2023-08-30. Citation: TCN-2023-NCLT-01858. Piramal Capital & Housing Finance Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 30 Aug 2023
- **Citation:** TCN-2023-NCLT-01858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sahara-india-medical-institute-limited-751ef641

## Summary

### Background

Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sahara India Medical Institute Limited, the Corporate Debtor, due to a default on a loan agreement. The application was triggered by a default of Rs. 940,96,00,862 as of February 22, 2022. The loan was originally advanced by Dewan Housing Finance Corporation Limited (DHFL), which later merged into Piramal Capital & Housing Finance Ltd. The Corporate Debtor argued against the initiation of CIRP, citing its financial health, ongoing proceedings in the Supreme Court related to SEBI-Sahara refund account, and the availability of security exceeding the loan amount. The

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## Facts

1. Piramal Capital & Housing Finance Limited (later APRN Enterprises Private Limited) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against Sahara India Medical Institute Limited.
2. The Corporate Debtor defaulted on a loan amounting to Rs. 940,96,00,862 as of February 22, 2022, comprising principal, interest, and other charges.
3. The loan agreement was initially between DHFL and the Corporate Debtor, with DHFL later merging into Piramal Capital & Housing Finance Limited.
4. The date of default was stated as June 11, 2018.
5. The Corporate Debtor argued that it was financially solvent and that the initiation of CIRP would hamper its operations as a hospital.
6. The Corporate Debtor also claimed that the loan was

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** The Hon'ble Supreme Court in M. Suresh Kumar Reddy Vs. Canara Bank & Ors. (2023)

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**Reasoning:** The NCLT found that there was no dispute that the debt was due and there had been

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**Interpretation:** The Supreme Court's interpretation of Section 7 of the IBC emphasizes that even

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**Application:** In this case, the NCLT found that the Corporate Debtor had defaulted on its

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** Sahara India…

## Timeline

- **2017-09-07 — Loan Agreeme…**: Loan Agreement dated September 7, 2017, between DHFL and Sahara India Medical Institute…
- **2018-06-11 — Date of D…**: Date of default stated as June 11, 2018, due…

## 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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