# In the matter of Zee Learn Limited CP (IB) 301-MB-C-1-2022

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04660. Yes Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Zee Learn…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/zee-learn-limited-cp-ib-301-mb-c-1-2022-bc79be25

## Summary

### Background

Yes Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Zee Learn Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, citing a default on financial debt. The petition was based on Zee Learn Limited's guarantee for loans extended to Zee Learn Education Society, Gyanmala Public Education Trust, and Mount Litera Education Foundation. The financial creditor claimed a total default amount of Rs. 4,689,990,947.45. The corporate debtor contested the petition, raising issues such as the applicability of Section 10A of the IBC, the validity of the invocation of guarantees, and alleged discrepancies in the accounts.

## Facts

Yes Bank Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Zee Learn Limited (Corporate Debtor). The petition was based on the Corporate Debtor's guarantee for the facilities extended to Zee Learn Education Society, Gyanmala Public Education Trust, and Mount Litera Education Foundation. Facility letters were issued on 2016-03-30 to the three borrowers. Loan and Master Facility Agreements were dated 2016-06-20. The financial creditor issued a facility letter dated 2018-03-22 to Taleem Research Foundation. A loan agreement was executed on 2018-09-21 between the Financial Creditor and Taleem Research Foundation. The Corporate Debtor guaranteed the

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## Issues and analysis

### Issue 1: Whether the petition filed by Yes Bank Limited under Section 7 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The NCLT found that the financial creditor had established the existence of a debt and a

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The NCLT applied Section 7 to the facts of the case, finding that Yes Bank

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Yes Bank L…
- **Respondents:** Zee Learn L…

## Timeline

- **2016-03-30 — Facility Lette…**: The Financial Creditor issued Facility Letters to Zee Learn Education Society, Gyanmala…
- **2016-06-20 — Loan and Master…**: Loan Agreement and Master Facility Agreement were entered into between the Financial…

## 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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