# 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-00805. 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-00805
- **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-c2c89db4

## 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, the Respondent. IREDA had sanctioned a credit facility of Rs. 44,30,00,000 to the respondent in 2011 for setting up a solar power project. An amendatory agreement was executed in 2012, reducing the loan amount. Subsequently, a new secured loan of Rs. 5.00 Crore was approved in 2017. The Respondent defaulted in timely servicing of interest and repayment of installments, leading to its account being classified as a Non-Performing Asset (NPA) in 2018.

## 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 setting up a 5 MW Solar Photovoltaic Grid connected Power Project in Gujarat. The Respondent executed necessary security and financial documents in favor of the applicant on 21.11.2011. IREDA disbursed Rs. 37,10,00,000 between 07.01.2012 and 30.06.2014. An amendatory agreement was executed on 10.09.2012, reducing the loan amount to Rs. 37,10,00,000. Subsequently, on 23.03.2017, IREDA approved a new secured loan of Rs. 5.00 Crore, disbursed on 10.07.2017, bringing the total disbursed amount to Rs. 42,10,00,000. The Respondent continuously defaulted in servicing interest and repaying installments. The

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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 available on record and heard the Ld. Counsel for the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** The Applicant provided Financial/Credit facility to the Respondent/Corporate

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## Parties

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

## Timeline

- **2011-07-29 — Loan San…**: IREDA sanctioned a term loan of Rs.…
- **2011-11-21 — Security Documents…**: Respondent executed security and 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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