Insolvency Code Section 7: Borrower Defaults on Loan, Declared NPA Pre-Restructuring on Dec 29, 2020. Asset Downgraded.

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....CIRP - Maintainability of application u/s 7 r.w.s. 10A - default in repayment of term loan - there was default committed before implementation of the Plan, as NPA was declared on 29.12.2020. Hence, in the present case, asset classification of the borrower has to be treated to be downgraded with effect from 29.12.2020. Clause 48, is thus only to be read with regard to downgrading to NPA for the relevant date and this Clause 48 is not relevant to find out event of default, which occurred under the One Time Restructuring Agreement and which is foundation of Section 7 Application. - AT....