Court’s decision
The Supreme Court of India dismissed the appeal filed by Power Trust, promoter of Hiranmaye Energy Ltd., and upheld the admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016 against the corporate debtor. The Court held that the default occurred on 31 March 2018, well before the Covid-era suspension under Section 10A, and that unfulfilled restructuring proposals did not novate the original loan agreement. It further ruled that business viability is irrelevant at the admission stage under Section 7. The stay on the Corporate Insolvency Resolution Process was vacated.
Facts
A common loan agreement dated 19 June 2013 enabled Hiranmaye Energy Ltd. to avail term loans of…