# In the matter of Sanjeevini Medlife Hospitals (India) Pvt. Ltd. C.P. (IB) No.64-BB-2022

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03975. 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-03975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sanjeevini-medlife-hospitals-india-pvt-ltd-cp-ib-no64-bb-2022-5ceb276d

## Summary

### Background

Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sanjeevini Medlife Hospitals (India) Pvt. Ltd, citing a default of Rs. 35,53,75,893. The Corporate Debtor opposed the petition, raising concerns about the loan sanction, project delays, and the secured creditor's actions. The Financial Creditor argued that the Corporate Debtor admitted the debt and default, and that the petition met the requirements of Section 7 of the IBC. The DRT had previously passed an order accepting a compromise petition.

## 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 had sanctioned a loan of Rs. 1390 Lacs in 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 into on 20.06.2019. The Corporate Debtor opposed the petition, citing project delays, the secured creditor's actions, and eligibility for COVID-19 relief schemes. The Corporate Debtor also claimed to have remitted Rs. 9.82

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of …

**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 that the application filed in the prescribed Form No 1

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

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**Application:** The Adjudicating Authority determined that the application was complete,

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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 Mem…**: Financial Creditor issued a Sanction…

## 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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