# In the matter of Shalivahana Green Energy Limited CP (IB) No.153-7-HDB-2022

> NCLT judgment dated 2022-10-19. Citation: TCN-2022-NCLT-00665. The case involves an application filed by Indian Renewable Energy Development Agency Limited…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shalivahana-green-energy-limited-cp-ib-no153-7-hdb-2022-1ef0f0fe

## Summary

### Background

The case involves an application filed by Indian Renewable Energy Development Agency Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against M/s Shalivahana Green Energy Limited (Corporate Debtor). The Financial Creditor alleges non-payment of Rs. 7,61,90,844/- by the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for a loan to set up a 10 MW Biomass Power Project. A loan agreement was executed, and the Financial Creditor disbursed the loan amount. The Corporate Debtor defaulted on repayments, leading to the Financial Creditor declaring

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## Facts

Indian Renewable Energy Development Agency Limited (IREDA), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Shalivahana Green Energy Limited, the Corporate Debtor, due to a default in payment of Rs. 7,61,90,844/-. The Corporate Debtor had approached IREDA for a loan of Rs. 2020 Lakhs to set up a 10 MW Biomass Power Project in Maharashtra, which was sanctioned on 19.01.2006. A loan agreement was executed on 24.02.2006, and IREDA disbursed the loan. The Corporate Debtor was initially named Shalivahana Constructions Ltd., later changed to Shalivahana Projects Limited, and finally to Shalivahana Green Energy Limited. The loan was repayable in 40

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## Issues and analysis

### Issue 1: Whether a financial debt as claimed by the financial creditor is due and payable by the corporate …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code (IBC) allows a financial creditor to

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had availed a loan from the

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**Interpretation:** The existence of a financial debt is a prerequisite for initiating CIRP under

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**Application:** In this case, the Corporate Debtor availed a loan from the Financial Creditor,

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Indian Renewable…
- **Respondents:** M/s Shalivahana…

## Timeline

- **2006-01-19 — Loan San…**: Financial Creditor sanctioned a term loan of…
- **2006-02-24 — Loan Agre…**: Loan agreement executed between…

## 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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