# In the matter of B.P. Foods Ltd. & Anr. IA 427-2018 in CP(IB) 209-NCLT-AHM-2017

> NCLT judgment dated 2019-08-23. Citation: TCN-2019-NCLT-01824. Credit Suisse Funds AG & Anr. filed an Interim Application (IA 427/2018) in CP(IB)…

- **Court:** NCLT
- **Order date:** 23 Aug 2019
- **Citation:** TCN-2019-NCLT-01824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bp-foods-ltd-anr-ia-427-2018-in-cpib-209-nclt-ahm-2017-f9032906

## Summary

### Background

Credit Suisse Funds AG & Anr. filed an Interim Application (IA 427/2018) in CP(IB) 209/NCLT/AHM/2017 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the Resolution Professional (RP) to collate and update their claim as Corporate Guarantors and to be treated as Financial Creditors. The applicants claimed to have extended loan facilities to the Principal Borrower, a Wholly Owned Subsidiary (WOS) of the Corporate Debtor, secured by a guarantee issued by the Corporate Debtor. The RP initially did not consider their claims due to issues with the guarantee documents but later received clarifications. The RP proposed including their claim but noted that the Corporate Insolvency Resolution Process (CIRP) period of 270 days had

…

## Facts

Credit Suisse Funds AG & Anr. (Applicants) filed an interim application seeking to be recognized as Financial Creditors in the Corporate Insolvency Resolution Process (CIRP) of B.P. Foods Products Private Limited (Corporate Debtor). The Applicants had extended loan facilities to B.P. Foods Overseas F.Z.E. (Principal Borrower), a Wholly Owned Subsidiary (WOS) of the Corporate Debtor, secured by corporate guarantees from the Corporate Debtor. The loans were provided via two promissory notes: one for USD 2,250,000.00 dated October 24, 2014, and another for USD 1,250,000.00 dated November 28, 2014. The Resolution Professional (RP) initially rejected the claims due to issues with the guarantee documents, specifically related to stamping and other technical reasons. The

…

## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) has the power to adjudicate and reject a claim submitted …

**Ratio:** The Resolution Professional's role is primarily administrative, focused on collating

…

**Reasoning:** The court relied on the provisions of the IBC and regulations, emphasizing that the RP's

…

**Interpretation:** The IBC assigns the RP the duty to collate and verify claims, but it does not

…

**Application:** The court found that the RP's initial rejection of the applicant's claim was

…

## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Credit Suisse…
- **Respondents:** B.P. Foods…; Sh. Kumar Kedia…
- **Advocates:** Naveen…; Amrita Th…; +2 more

## Timeline

- **2014-10-24 — Promissory…**: Principal Borrower issued a Promissory Note dated October 24, 2014 to the Fund 1 for USD…
- **2014-11-28 — Promissory…**: Principal Borrower issued another Promissory Note dated November 28, 2014 to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/nclt-chandigarh/bp-foods-ltd-anr-ia-427-2018-in-cpib-209-nclt-ahm-2017-f9032906