# In the matter of Sanjeevini Medilife Hospitals (India) Pvt. Ltd.

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03966. Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03966
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanjeevini-medilife-hospitals-india-pvt-ltd-5ad4469a

## Summary

### Background

Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sanjeevini Medlife Hospitals (India) Pvt. Ltd, alleging default on a total amount of Rs. 35,53,75,893. The Corporate Debtor opposed the petition, citing reasons such as the Financial Creditor not enclosing the entire Loan Sanction letter, delays in project completion, and the secured creditor classifying the account as Non-Performing Assets despite remittances made by the Corporate Debtor. The Financial Creditor argued that the Corporate Debtor admitted the debt and default, and that the petition satisfies the requirements of Section 7 of the IBC, 2016. The Financial Creditor also stated that the

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## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the IBC, 2016, to initiate CIRP against Sanjeevini Medlife Hospitals (India) Pvt. Ltd, the Corporate Debtor, due to a default of Rs. 35,53,75,893. The Corporate Debtor was incorporated on 26.03.2009. The Financial Creditor sanctioned a loan of Rs. 1390 Lacs on 10.02.2011, followed by additional loans. The Corporate Debtor executed Term Loan Agreements and Hypothecation Agreements. The Financial Creditor filed OA No. 833/2017 before DRT, and a Compromise Petition was entered on 20.06.2019. The Corporate Debtor opposed the petition, citing delays in project completion and other issues. The Corporate Debtor also availed a One Time Settlement (OTS) which was not complied with. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the IBC, 2016 is complete and satisfies the …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Adjudicating Authority found the application filed in the prescribed Form No 1 to be

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**Interpretation:** Section 7 of the IBC, 2016 provides the mechanism for a financial creditor to

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**Application:** The Adjudicating Authority determined that the application filed by Canara Bank

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Canara…
- **Respondents:** Sanjeevini…

## Timeline

- **2009-03-26 — Incorporation of…**: Sanjeevini Medlife Hospitals…
- **2011-02-10 — Sanction o…**: Financial Creditor issued a Sanction…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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