# In the matter of Shraddha Energy And Infraprojects
Private Limited CP (IB) No.464-MB-IV-2021

> NCLT judgment dated 2023-03-03. Citation: TCN-2023-NCLT-04335. The case involves an application filed by Netafim Agricultural Financing Agency Private…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shraddha-energy-and-infraprojects-private-limited-cp-ib-no464-mb-iv-2021-a73591ba

## Summary

### Background

The case involves an application filed by Netafim Agricultural Financing Agency Private Limited, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Shraddha Energy And Infraprojects Private Limited, the Corporate Debtor. The financial creditor had provided FCE facility for disbursement of loan of Rs.9,16,07,065/- to 995 farmers as per the Tripartite agreement dated 03.10.2013 entered between the Financial Creditor, Corporate Debtor and Netafim Irrigation (India) Private Limited. The Corporate Debtor also entered a Continuing Deed of Guarantee dated 03.10.2013 guaranteeing the Financial Creditor to repay the amount due from the recommended farmer

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## Facts

Netafim Agricultural Financing Agency Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shraddha Energy And Infraprojects Private Limited (Corporate Debtor). The Financial Creditor provided a loan facility to farmers through a Tripartite Agreement dated 03.10.2013 involving the Corporate Debtor and Netafim Irrigation (India) Private Limited. The Corporate Debtor guaranteed the repayment of loans to the Financial Creditor. The total default amount claimed by the Financial Creditor is Rs. 5,41,34,813/-. The date of default is considered to be 15.04.2021. The Corporate Debtor disputed the claim, stating that the Financial Creditor

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the I&B Code is …

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

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**Reasoning:** The Bench considered the material on record and found that the Petition under section 7

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**Interpretation:** The court interpreted Section 7 to mean that if the application is complete and

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**Application:** The court applied this interpretation to the facts and found that the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** NETAFIM AGRICULTUR…
- **Respondents:** Shraddha Energy &…

## Timeline

- **2013-10-03 — Tripartite Ag…**: Tripartite agreement entered between the Financial Creditor, Corporate Debtor, and…
- **2013-10-03 — Continuing Deed of…**: Corporate Debtor entered a Continuing Deed of Guarantee guaranteeing the Financial…

## 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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