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

> NCLT judgment dated 2025-06-11. Citation: TCN-2025-NCLT-00729. The Indian Renewable Energy Development Agency Limited (IREDA), a public limited government…

- **Court:** NCLT
- **Order date:** 11 Jun 2025
- **Citation:** TCN-2025-NCLT-00729
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siri-ram-syal-hydro-power-private-limited-687eca03

## 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 Corporate Insolvency Resolution Process (CIRP) against Siri Ram Syal Hydro Power Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's failure to clear an outstanding amount of Rs. 5,76,39,687/- as of 30.06.2024. The date of default was 31.12.2021, and the account was classified as a Non-Performing Asset (NPA) on 31.03.2022. IREDA had sanctioned a term loan to the Corporate Debtor for a hydro-power project, which was secured through various instruments including hypothecation deeds, corporate guarantees, and mortgages.

## Facts

Indian Renewable Energy Development Agency Limited (IREDA), a public limited government company, extended credit facilities to Siri Ram Syal Hydro Power Private Limited, a private limited company engaged in power generation, for setting up a 1.80 MW Kotlu Small Hydro Power Project in Himachal Pradesh. The initial term loan of Rs. 6,42,00,000 was sanctioned on 02.06.2006 and formalized through a Loan Agreement on 11.08.2006. The loan was secured by various instruments, including hypothecation of movable properties, corporate guarantees by Subba Microsystem Ltd., personal guarantees by Sanjay Raj Subba and Ramesh Chander, and mortgages of land. Further credit facilities of Rs. 1,38,00,000 were extended on 12.02.2009. The repayment schedule was revised multiple times at

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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) requires that the entity claiming to be a

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**Application:** The Applicant, IREDA, extended credit facilities to the Corporate Debtor, Siri

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## Parties

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

## Timeline

- **2006-02-06 — Sanction…**: Financial Creditor sanctioned a…
- **2006-08-11 — Loan Agre…**: Term loan formalized…

## 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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