# In the matter of SKS Power Generation (Chattisgarh) Limited CP (IB) No.893-MB-2021

> NCLT judgment dated 2022-04-29. Citation: TCN-2022-NCLT-02933. Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Apr 2022
- **Citation:** TCN-2022-NCLT-02933
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sks-power-generation-chattisgarh-limited-cp-ib-no893-mb-2021-a031da6d

## Summary

### Background

Bank of Baroda, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against SKS Power Generation (Chhattisgarh) Limited, the Corporate Debtor. The Financial Creditor claimed a default amount of Rs. 110,51,98,982.38/- for the period from 31.03.2021 to 31.05.2021. The Corporate Debtor argued that the defaults occurred during the 'Zero Period' (25.03.2020 to 25.03.2021) and should not be considered for initiating CIRP due to Section 10A of the I&B Code.

## Facts

Bank of Baroda (Financial Creditor) filed CP (IB) No.893/MB/2021 under Section 7 of the I&B Code, 2016, against SKS Power Generation (Chhattisgarh) Limited (Corporate Debtor) for initiating CIRP. The Financial Creditor claimed a default of Rs. 110,51,98,982.38/- for the period 31.03.2021 to 31.05.2021, including a principal amount of Rs. 50,00,00,000.00 payable as an installment on 31.03.2021 and interest of Rs. 60,51,98,982.38 outstanding as on 31.05.2021. The Date of Default was mentioned as 31.03.2021, and the Petition was filed on 04.09.2021. The Financial Creditor had provided financial assistance to Entwickeln India Energy Private Limited (EIEPL) as the Borrower and SKS Power Generation as the Co-Obligor for an aggregate principal amount of Rs. 1600,00,00,000

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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 I&B Code allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Tribunal found that the Financial Creditor had submitted sufficient evidence to

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The Tribunal applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** Bank of B…
- **Respondents:** SKS Power…

## Timeline

- **2019-03-11 — Rupee Term Loan…**: Rupee Term Loan Facility Agreement between the Financial Creditor, the Corporate Debtor,…
- **2019-07-30 — Working Capital…**: Working Capital Facility Agreement between the Financial Creditor, SBI, the Corporate…

## 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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