# In the matter of Mr. Rakshit Dhirajlal Doshi Vs. IDBI Bank Ltd.,Company Appeal (AT) (Insolvency) No. 658 of 2022

> NCLAT judgment dated 2022-11-15. Citation: TCN-2022-NCLAT-00098. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) by the…

- **Court:** NCLAT
- **Order date:** 15 Nov 2022
- **Citation:** TCN-2022-NCLAT-00098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-rakshit-dhirajlal-doshi-vs-idbi-bank-ltdcompany-appeal-e34ce6ee

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) by the Appellant, challenging the order dated 10.5.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad) in CP (IB) No. 570/2018. The Impugned Order admitted a Section 7 application under IBC filed by the Financial Creditor IDBI Bank Limited, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against the corporate debtor Fivebro International Private Limited.

## Facts

Doshion Veolia Water Solutions Private Limited took a loan in 2014 from a consortium of banks led by Bank of Baroda, including Union Bank of India, Standard Chartered Bank, and IDBI Bank Limited. Fivebro International Private Limited (FIPL) signed a Deed of Guarantee on 27.6.2014 with IL&FS Trustee Company Limited as Security Trustee, acting on behalf of the consortium. The loan was restructured, increasing the debt amount to Rs.422.11 crores, with an actual disbursement of Rs.408.64 crores to Doshion. Standard Chartered Bank did not lend its share in the restructured loan. When Doshion defaulted, IDBI Bank sent letters to Doshion and FIPL in 2016, recalling the loan facility and demanding payment. IDBI Bank filed an application under Section 7 of the IBC on

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## Issues and analysis

### Issue 1: Whether IDBI Bank had the locus standi to file an application under Section 7 of the IBC …

**Ratio:** The principle is that when lenders are part of a consortium and have entered into an

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**Reasoning:** The NCLAT analyzed the Inter-se Agreement and Security Trustee Agreement and found that

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**Interpretation:** The Inter-se Agreement and Security Trustee Agreement are interpreted to mean

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**Application:** In this case, the NCLAT found that IDBI Bank's unilateral action in declaring

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +1 more
- **Appellants:** Rakshit Dhirajlal…
- **Respondents:** Fivebro Internatio…; IDBI Bank…
- **Advocates:** Vaishnavi…; Akshat…

## Timeline

- **2014-01-01 — Loan Tak…**: Doshion Veolia Water Solutions Private Limited…
- **2014-06-27 — Deed of Gua…**: Fivebro International Private Limited signed a Deed of Guarantee with IL&FS Trustee…

## 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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