# In the matter of Sanchi Mediaids Private Ltd.

> NCLT judgment dated 2023-11-29. Citation: TCN-2023-NCLT-00534. Siemens Financial Services Pvt Ltd filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 29 Nov 2023
- **Citation:** TCN-2023-NCLT-00534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanchi-mediaids-private-ltd-a2b3a07e

## Summary

### Background

Siemens Financial Services Pvt Ltd filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sanchi Mediaids Private Ltd, the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The corporate debtor had availed credit facilities in the form of three secured loans, with loan agreements dated 27.02.2019, 01.12.2020, and 10.10.2021. The total amount availed as loan was Rs. 4,15,70,000/-.

## Facts

Siemens Financial Services Pvt Ltd, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sanchi Mediaids Private Ltd, the corporate debtor. The corporate debtor availed three secured loans. The first loan agreement, dated 27.02.2019, was for Rs. 16,00,000/-. The second loan agreement, dated 01.12.2020, was for Rs. 9,70,000/-. The third loan agreement, dated 10.10.2021, was for Rs. 3,90,00,000/-. The total loan amount availed was Rs. 4,15,70,000/-. The corporate debtor defaulted on 14.01.2022, and the account was classified as NPA on 14.04.2022. The financial creditor issued a notice on 16.05.2022, demanding Rs. 4,05,51,327/-. The petition was filed on 19.04.2023. The respondent was set ex-parte on 04.09.2023.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court observed that the financial creditor had submitted sufficient evidence,

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**Interpretation:** Section 7 of the IBC is interpreted to allow for the initiation of CIRP when a

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**Application:** The court applied the provisions of Section 7 to the facts of the case, noting

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** Siemens Financial…
- **Respondents:** Sanchi Mediaids…

## Timeline

- **2019-02-27 — First Loan Ag…**: Loan agreement for Rs.…
- **2020-12-01 — Second Loan A…**: Loan agreement for Rs.…

## 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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