# In the matter of Chikali Nagaraju vs. Ispat Corp Limited

> NCLAT judgment dated 2025-12-15. Citation: TCN-2025-NCLAT-00612. The appeal was filed by a Suspended Director of the Corporate Debtor challenging the order…

- **Court:** NCLAT
- **Order date:** 15 Dec 2025
- **Citation:** TCN-2025-NCLAT-00612
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/chikali-nagaraju-vs-ispat-corp-limited-49a75b0e

## Summary

### Background

The appeal was filed by a Suspended Director of the Corporate Debtor challenging the order dated 15.08.2025 passed by the Adjudicating Authority (National Company Law Tribunal), Cuttack Bench, which allowed the Financial Creditor's application to amend the date of default in Part IV of Form A of Section 7 application.

## Facts

M/s Balasore Alloys Limited (Corporate Debtor) executed a Deed of Indemnity and Guarantee for Inter Corporate Deposit (ICD) on 14.12.2015.

The Financial Creditor granted a Short-Term Inter Corporate Deposit of Rs.10 Crore for 15 days @15% per annum interest.

The Corporate Debtor acknowledged the receipt of Inter Corporate Deposit of Rs.10 Crore having a maturity period of 15 days only with interest calculated @ 15% per annum by letter dated 14.12.2015.

The Corporate Debtor did not pay the amount of Rs.10,05,54,795/- on expiry of 15 days as contemplated in the Deed of Indemnity and Guarantee.

The Corporate Debtor issued post-dated cheques, which were later not honored.

The Financial Creditor filed IA(IB) No.107/CB/2024 seeking amendment of date of default in Part IV.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the amendment of the date of default in the …

**Ratio:** The Adjudicating Authority has the power to allow amendments to pleadings, including the

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**Reasoning:** The Tribunal relied on several judgments, including Dena Bank (Now Bank of Baroda) vs. C.

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**Interpretation:** The power to amend pleadings is discretionary and should be exercised

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**Application:** In this case, the Adjudicating Authority's decision to allow the amendment was

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Shri. Chikali…
- **Respondents:** Balasore Alloys…; M/s Ispat Corp…
- **Other parties:** Ispat Corp…
- **Advocates:** Krishnendu…; SANDEEP K…; +11 more

## Timeline

- **2015-12-14 — Execution o…**: M/s Balasore Alloys Limited executed a Deed of Indemnity and Guarantee for Inter…
- **2015-12-14 — ICD Gran…**: Financial Creditor granted a Short-Term Inter Corporate Deposit of Rs.10 Crore for 15…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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