# In the matter of Seya Industries Limited

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00876. Think Hard India Private Limited filed a company petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00876
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/seya-industries-limited-66f78e2f

## Summary

### Background

Think Hard India Private Limited filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Seya Industries Limited, alleging default in payment. The Financial Creditor sanctioned a business loan of Rs. 152,00,00,000/- to the Corporate Debtor, which was disbursed on 06.01.2020. The aggregate outstanding amount of Rs. 432,86,16,798/- was due as of 30.04.2023. The Corporate Debtor defaulted on payment obligations around April 2022, leading to the Financial Creditor issuing an Event of Default Notice on 15.09.2022. The Corporate Debtor argued that the petition was unwarranted and that the board resolution authorizing the initiation of CIRP was defective. They also claimed

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## Facts

Think Hard India Private Limited (Financial Creditor) sanctioned a business loan of Rs. 152,00,00,000/- to Seya Industries Limited (Corporate Debtor) on 09.10.2019, which was disbursed on 06.01.2020. The outstanding amount as of 30.04.2023 was Rs. 432,86,16,798/-. The loan was secured by a mortgage of land and personal/corporate guarantees. The Corporate Debtor defaulted on payments around April 2022. The Financial Creditor issued an Event of Default Notice on 15.09.2022 and statutory demand notices. No payment was received from the Corporate Debtor or Security Providers. The Financial Creditor filed Company Petitions No. 1265 and 1266 of 2022 under Section 95 of the Insolvency and Bankruptcy Code, 2016, against two of the Guarantors. An additional demand notice was

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## Issues and analysis

### Issue 1: Whether the Company Petition No. (IB) -446(MB)/2023 should be admitted for initiation of Corporate …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, allows for the initiation of CIRP upon the

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**Reasoning:** The court found that the Corporate Debtor had defaulted on its payment obligations to the

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**Interpretation:** The court interpreted the provisions of the Insolvency and Bankruptcy Code,

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**Application:** The court applied the provisions of the Insolvency and Bankruptcy Code, 2016,

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Think Hard India…
- **Respondents:** Seya Industries…

## Timeline

- **2017-03-15 — Facility Ag…**: Facility agreement…
- **2019-10-09 — Sanction…**: Financial Creditor sanctioned…

## 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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