# In the matter of XL Energy Limited CP(IB) No. 16-2023

> NCLT judgment dated 2023-03-27. Citation: TCN-2023-NCLT-04045. The case involves an application filed by Invent Assets Securitisation and Reconstruction…

- **Court:** NCLT
- **Order date:** 27 Mar 2023
- **Citation:** TCN-2023-NCLT-04045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/xl-energy-limited-cpib-no-16-2023-5f84687a

## Summary

### Background

The case involves an application filed by Invent Assets Securitisation and Reconstruction Private Limited, the Financial Creditor (FC), against XL Energy Limited, the Corporate Debtor (CD), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 37,54,18,48,101. The Corporate Debtor had approached various banks for financial assistance, and a consortium of banks granted credit facilities. The Applicant had assigned their share of debts to Invent Assets. The CD was referred to the Corporate Debt Restructuring Forum, and a restructuring package was approved. However, the CD failed to maintain financial discipline, leading to its account being classified as NPA. The Applicant issued a possession notice under the SARFAESI Act, and a

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## Facts

Invent Assets Securitisation and Reconstruction Private Limited (Financial Creditor) filed an application against XL Energy Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 37,54,18,48,101. XL Energy Limited had approached various banks, including State Bank of Hyderabad, State Bank of Mysore, IDBI Bank, State Bank of Bikaner and Jaipur, Canara Bank, Bank of India, Vijaya Bank, Federal Bank and ICICI Bank, for financial assistance, which was granted. Invent Assets Securitisation and Reconstruction Private Limited had been assigned the debts. The Corporate Debtor was referred to the Corporate Debt Restructuring Forum, and a restructuring package was approved on 30.12.2009, with a letter of approval dated

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process (CIRP) against the …

**Ratio:** The legal principle applied is that if a corporate debtor admits to a debt and default,

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**Reasoning:** The court reasoned that the Corporate Debtor had admitted to the debt and default in its

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**Interpretation:** The interpretation is that an admission of debt and default by the Corporate

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**Application:** The Corporate Debtor, XL Energy Limited, admitted to the debt and default.

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** Invent Assets…
- **Respondents:** XL Energy…

## Timeline

- **2009-12-30 — Restructuring Package…**: The Corporate Debt Restructuring Empower…
- **2010-01-23 — Letter of A…**: Letter of Approval for the…

## 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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