# In the matter of Taxus Infrastructure and Power Projects Private Limited (IB)-360(ND)-2021

> NCLT judgment dated 2022-10-10. Citation: TCN-2022-NCLT-00808. The Indian Renewable Energy Development Agency (IREDA) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 10 Oct 2022
- **Citation:** TCN-2022-NCLT-00808
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/taxus-infrastructure-and-power-projects-private-limited-ib-360nd-2021-95010fde

## Summary

### Background

The Indian Renewable Energy Development Agency (IREDA) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Taxus Infrastructure & Power Projects Private Limited, due to defaults on a term loan facility. IREDA had sanctioned and disbursed loans to Taxus for setting up a solar power project. Taxus defaulted on repayments, leading to its account being classified as a Non-Performing Asset (NPA).

## Facts

Indian Renewable Energy Development Agency (IREDA) sanctioned a term loan of Rs. 44,30,00,000 to Taxus Infrastructure and Power Projects Private Limited on 29.07.2011 for a 5 MW Solar Photovoltaic Grid connected Power Project. IREDA disbursed Rs. 37,10,00,000 between 07.01.2012 and 30.06.2014, and later approved an additional loan of Rs. 5.00 Crore on 23.03.2017, disbursed on 10.07.2017, totaling Rs. 42,10,00,000. Taxus defaulted on repayments, leading to its account being classified as a Non-Performing Asset (NPA) on 30.09.2018. IREDA issued a demand notice on 18.06.2018 and a loan recall notice on 02.06.2021. As of 31.05.2021, the total amount in default was Rs. 62,92,99,088, including principal, interest, and liquidated damages. IREDA then filed an application under

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## Issues and analysis

### Issue 1: Whether the application filed by the Indian Renewable Energy Development Agency (IREDA) under …

**Ratio:** Section 7(5) of the Insolvency and Bankruptcy Code, 2016, allows for the admission of an

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**Reasoning:** The court perused the documents and arguments presented by IREDA and found that the

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

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**Application:** The court found that IREDA's application was complete and demonstrated that

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## Parties

- **Judges:** BACHU VENKAT…; L. N. G…
- **Appellants:** Indian Renewable…
- **Respondents:** Taxus Infrastructu…

## Timeline

- **2011-07-29 — Loan San…**: IREDA sanctioned a term loan of Rs.…
- **2011-11-21 — Loan Agre…**: Loan Agreement, Deed of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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