# In the matter of Umritha Infrastructure Development LLP

> NCLT judgment dated 2024-01-31. Citation: TCN-2024-NCLT-02839. Yes Bank Limited, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Jan 2024
- **Citation:** TCN-2024-NCLT-02839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/umritha-infrastructure-development-llp-467aa6c2

## Summary

### Background

Yes Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Umritha Infrastructure Development LLP, the Corporate Debtor, due to defaults in repayment of credit facilities. The Corporate Debtor had availed various credit facilities, including term loans, bank guarantees, and a Funded Interest Term Loan Facility (FITN), totaling Rs. 44,70,98,193.21. The initial date of default was 02.10.2021, and the loan account was declared a Non-Performing Asset (NPA) on 24.11.2022. The Financial Creditor issued a Loan Recall cum Guarantee Invocation Notice on 13.02.2023 and a demand notice under Section 13(2) of the SARFAESI Act, 2022 on 25.08.2023, demanding outstanding dues. The Corporate Debtor's

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## Facts

1. Yes Bank Limited extended credit facilities to Umritha Infrastructure Development LLP, including term loans, bank guarantees, and a Funded Interest Term Loan Facility (FITN), totaling Rs. 44,70,98,193.21.
2. The initial date of default was 02.10.2021, and the loan account was declared a Non-Performing Asset (NPA) on 24.11.2022.
3. Yes Bank issued a Loan Recall cum Guarantee Invocation Notice on 13.02.2023 and a demand notice under Section 13(2) of the SARFAESI Act, 2022 on 25.08.2023, demanding outstanding dues of INR 15,65,08,059.97 as on 21.08.2023.
4. The Financial Creditor claimed a total outstanding amount of INR 15,81,22,685.16 as on 18.09.2023, including interest, towards the Term Loan Facility and FITL Facility.
5. The Corporate Debtor committed several defaults

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to admit the application under Section 7 of …

**Ratio:** Section 7(5) of the IBC, 2016, provides that where the Adjudicating Authority is

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**Reasoning:** The Adjudicating Authority has limited jurisdiction under Section 7(5) of the IBC, 2016.

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**Interpretation:** Section 7(5) of the IBC, 2016, mandates the Adjudicating Authority to admit an

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**Application:** In this case, the Adjudicating Authority found that a default had occurred, the

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** Yes Bank L…
- **Respondents:** Umritha Infrastruc…

## Timeline

- **2021-10-02 — Initial Date o…**: The initial date of default qua the credit facilities extended by the Financial Creditor…
- **2022-11-24 — Loan Account Declared…**: The loan account of the Corporate Debtor was…

## 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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