NCLT Kolkata Admits Samsara Energy Into Insolvency Over Unpaid Interest On ₹39 Crore Loan

The National Company Law Tribunal (NCLT), Kolkata Bench, has recently admitted Samsara Energy Limited into insolvency after finding that its failure to pay interest constituted a default under the terms of a loan agreement, despite a nine-year moratorium on repayment of the principal.

The bench of Judicial Member Labh Singh and Technical Member Rekha K. Shah held that the moratorium under the agreement did not extend to monthly interest payments.

The tribunal noted that Clause 7.1.2 of the agreement expressly treated non-payment of interest when due as an event of default.

“It was also agreed by Clause 7.1.2 of loan agreement that nonpayment of interest by the Corporate Debtor to the Financial Creditor as and when the interest amount falls due for payment shall amount to an event of default,” the tribunal observed.

SREI Equipment Finance Limited had disbursed ₹39 crore to Samsara Energy under the loan agreement. It approached the tribunal over outstanding dues of approximately ₹25.76 crore.

Samsara Energy argued that the insolvency petition was premature because the nine-year moratorium on principal repayment had not expired. It also relied on pending proceedings under Section 66 of the Insolvency and Bankruptcy Code concerning alleged avoidable transactions involving the loan.

Rejecting the moratorium argument, the tribunal observed that the agreement required Samsara Energy to pay interest on the disbursed amount every month. It held that the moratorium on principal repayment did not cover these interest payments.

The tribunal also held that the pending proceedings under Section 66 did not prevent the lender from pursuing insolvency proceedings under Section 7. Relying on an earlier decision of the National Company Law Appellate Tribunal, it treated the two proceedings as independent remedies.

The tribunal accordingly admitted the insolvency application and initiated the corporate insolvency resolution process against Samsara Energy.