# In the matter of JC Flowers Asset Reconstruction Private Limited vs. Laxmi Oil and Vanaspati Private Limited

> NCLAT judgment dated 2024-04-23. Citation: TCN-2024-NCLAT-00485. This case involves an appeal against an order dated 13.06.2022 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 23 Apr 2024
- **Citation:** TCN-2024-NCLAT-00485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jc-flowers-asset-reconstruction-private-limited-vs-laxmi-oil-and-vanaspati-priva-ee892aab

## Summary

### Background

This case involves an appeal against an order dated 13.06.2022 passed by the National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj, which dismissed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against Laxmi Oil and Vanaspati Private Limited. The appeal was filed by Yes Bank Limited, later substituted by JC Flowers Asset Reconstruction Private Limited. The NCLT dismissed the application, citing a lack of basis for determining the date of default as 28.02.2020 and noting that the loan recall notice was issued on 27.08.2020, falling within the period covered under Section 10A of the Code, which provides immunity against CIRP proceedings during a specified period related

…

## Facts

Laxmi Oil and Vanaspati Private Limited (the Respondent/Corporate Debtor) availed credit facilities from Yes Bank Limited (the Original Appellant/Financial Creditor), later substituted by JC Flowers Asset Reconstruction Private Limited (the Appellant). A Master Facility Agreement was signed on 29.03.2017. The secured cash credit limit was extended to Rs. 20 Crores. The facility was to expire on 15.03.2018, but was later renewed. The Appellant claimed that the Respondent delayed in making payments towards interest for the months of November 2019, December 2019, and January 2020. Interest for these months was debited on 01.12.2019, 01.01.2020, and 01.02.2020, and serviced by the Respondent on 26.02.2020 and 27.02.2020 with delay. The Appellant stated that interest for

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing the application under Section 7 of the …

**Ratio:** The ratio is based on the interpretation of Section 7 of the IBC in conjunction with

…

**Reasoning:** The court reasoned that the Appellant's claimed date of default (28.02.2020) was either

…

**Interpretation:** The interpretation of Section 7, Section 10A, and Section 3(12) of the IBC,

…

**Application:** The court applied the ratio and reasoning to the specific facts of the case. It

…

## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** JC Flowers Asset…
- **Respondents:** Laxmi Oil and…

## Timeline

- **2017-03-29 — Master Facility…**: Master Facility Agreement was signed…
- **2018-02-15 — Cash Credit Limit…**: Secured cash credit limit was extended vide letter dated 15.02.2018 enhancing from Rs. 10…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/jc-flowers-asset-reconstruction-private-limited-vs-laxmi-oil-and-vanaspati-priva-ee892aab