# In the matter of Andaman Sea Foods Pvt. Ltd. CP (IB) No.51-KB-2018

> NCLT judgment dated 2018-04-24. Citation: TCN-2018-NCLT-01505. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Apr 2018
- **Citation:** TCN-2018-NCLT-01505
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/andaman-sea-foods-pvt-ltd-cp-ib-no51-kb-2018-3c5dd457

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Andaman Sea Foods Private Ltd. for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 59,22,60,988.35, comprising a principal amount of Rs. 37,65,26,621.15 and interest of Rs. 21,76,34,756.20 as of December 31, 2017. The Corporate Debtor was given loan and various credit facilities which were subsequently renewed. The Financial Creditor restructured the existing limit in 2013. The Corporate Debtor failed to repay the principal loan amount along with interest.

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Andaman Sea Foods Private Ltd., the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was filed due to the Corporate Debtor's failure to repay a debt of Rs. 59,22,60,988.35, which included a principal amount of Rs. 37,65,26,621.15 and interest of Rs. 21,76,34,756.20 as of December 31, 2017. The Corporate Debtor had been granted loan and credit facilities by SBI, which were subsequently renewed. SBI had restructured the Corporate Debtor's existing credit limit in 2013. The Corporate Debtor acknowledged the receipt of demand notices but raised contentions against them. The

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## Issues and analysis

### Issue 1: Whether there is default as …

**Ratio:** The Hon'ble Supreme Court in Innoventive Industries Ltd. vs. ICICI Bank & Anr. has

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**Reasoning:** The Adjudicating Authority considered the computation statement showing the date of

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**Interpretation:** Section 7 of the IBC deals with the initiation of the Corporate Insolvency

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**Application:** The Adjudicating Authority applied the principles laid down by the Supreme

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** State Bank of…
- **Respondents:** Andaman Sea Foods…; M/s. Andaman Sea…

## Timeline

- **2001-11-07 — Sanction…**: Copy of sanction letter to M/s. Andaman Sea…
- **2001-12-04 — Agreement f…**: Copy of Agreement for Loan (Form C-1) for…

## 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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