# In the matter of SIRI RAM SYAL HYDRO POWER PRIVATE LIMITED

> NCLT judgment dated 2025-06-11. Citation: TCN-2025-NCLT-00726. The Indian Renewable Energy Development Agency Limited (IREDA), a public limited government…

- **Court:** NCLT
- **Order date:** 11 Jun 2025
- **Citation:** TCN-2025-NCLT-00726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siri-ram-syal-hydro-power-private-limited-59c87d05

## Summary

### Background

The Indian Renewable Energy Development Agency Limited (IREDA), a public limited government company, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Siri Ram Syal Hydro Power Private Limited, a private limited company, due to default in repayment of a term loan. IREDA had sanctioned a term loan of Rs. 6,42,00,000 in 2006 for setting up a hydro-power project. Additional credit facilities were extended in 2009, bringing the total disbursed amount to Rs. 7,30,93,390. Various security instruments, including hypothecation deeds, corporate guarantees, and mortgages, were executed to secure the loan. Despite multiple reschedulings of the repayment terms, the Corporate

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## Facts

Indian Renewable Energy Development Agency Limited (IREDA) sanctioned a term loan of Rs. 6,42,00,000 to Siri Ram Syal Hydro Power Private Limited in 2006 for a hydro-power project in Himachal Pradesh. The loan was formalized through a Loan Agreement dated 11.08.2006. Additional credit facilities of Rs. 1,38,00,000 were extended in 2009. The total amount disbursed to the Corporate Debtor was Rs. 7,30,93,390. Various security instruments were executed, including hypothecation deeds, corporate guarantees by Subba Microsystem Ltd., personal guarantees by Mr. Sanjay Raj Subba and Mr. Hari Babu Neupane, and mortgages. The repayment schedule was revised multiple times through rescheduling letters dated 15.03.2010, 30.03.2011, and 28.03.2014, and an NCEF Sanction Letter dated

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## Issues and analysis

### Issue 1: Whether the Applicant falls in the category of “Financial Creditor" as per Section 5(7) of the …

**Ratio:** Section 5(7) of the Insolvency and Bankruptcy Code, 2016 defines a 'Financial Creditor'

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**Reasoning:** The Adjudicating Authority considered the definition of 'Financial Creditor' under

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**Interpretation:** The interpretation of Section 5(7) focuses on whether the entity extended a

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**Application:** The Applicant, IREDA, extended a term loan to the Corporate Debtor, and the

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## Parties

- **Judges:** BACHU VENKAT…; Sanjeev R…
- **Appellants:** Indian Renewable…
- **Respondents:** Siri Ram Syal…

## Timeline

- **2006-06-02 — Sanction…**: IREDA sanctioned a term loan of Rs.…
- **2006-08-11 — Loan Agre…**: The term loan agreement was executed…

## 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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