# In the matter of Anand Agro Chem India Limited

> Read the full IBC case summary for In the matter of Anand Agro Chem India Limited. NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-05316.

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-05316
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/anand-agro-chem-india-limited-e332a753

## Summary

### Background

The financial creditors filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process against the corporate debtor for defaults on Inter-Corporate Deposits. The corporate debtor contended that the application was barred by Section 10A of the Code as the defaults occurred during the prohibited period.

## Facts

The Financial Creditor No.1 entered into an Inter-Corporate Deposit Agreement with the Corporate Debtor on March 28, 2018, and Financial Creditor No.2 entered into another ICD Agreement on March 31, 2018. Under these agreements, the Financial Creditors disbursed interest-free ICDs totaling Rs. 22 crore to the Corporate Debtor. The terms of these ICDs stipulated a repayment period of 24 months from the date of execution.

The repayment dates for these ICDs were March 27, 2020, and March 30, 2020, respectively. The Financial Creditors subsequently sent multiple letters and notices to the Corporate Debtor demanding repayment of Rs. 11 crore each, citing defaults in repayment of the ICDs. However, no repayments were made by the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the application for initiation of Corporate Insolvency Resolution Process is barred by…

**Ratio:** An application for Corporate Insolvency Resolution Process is barred under Section 10A of…

**Reasoning:** The Tribunal noted that the dates of default, March 27, 2020, and March 30, 2020,…

**Interpretation:** The court interpreted Section 10A and its proviso to mean that the legislative…

**Application:** Since the defaults occurred on March 27, 2020, and March 30, 2020, which fall…

## Parties

- **Judges:** Praveen…; Ashish…
- **Advocates:** For the Financial…

## Timeline

- **March 28, 2018 — ICD Agree…**: Financial Creditor No.1 entered into an Inter-Corporate Deposit Agreement with the…
- **March 31, 2018 — ICD Agree…**: Financial Creditor No.2 entered into an Inter-Corporate Deposit Agreement with the…

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