# In the matter of Careway Agro Procurement Pvt. Ltd. IB-238-ND-2019

> NCLT judgment dated 2019-10-02. Citation: TCN-2019-NCLT-01107. The case involves an application filed by Bank of India under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Oct 2019
- **Citation:** TCN-2019-NCLT-01107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/careway-agro-procurement-pvt-ltd-ib-238-nd-2019-409390c4

## Summary

### Background

The case involves an application filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Careway Agro Procurement Pvt. Ltd. The bank claims that the corporate debtor defaulted on financial debts. The application was filed under the Insolvency and Bankruptcy Code, 2016 (Application to Adjudicating Authority) Rules, 2016. Mr. Rameshwar Dayal had previously filed an application against the corporate debtor before the same tribunal.

## Facts

Bank of India filed an application under Section 7 of the IBC, 2016, against Careway Agro Procurement Pvt. Ltd., claiming a default on financial debt. The bank's application was supported by documents, including the application itself, a certificate of charges issued by the Registrar of Companies (ROC), and the corporate debtor's financial statement. The corporate debtor had initially been sanctioned a cash credit of Rs. 4 crores on 2012-12-27. This was later enhanced to Rs. 15.00 crores on 2013-09-25. The amount claimed by the bank was Rs. 13,46,59,953.00 as on 2018-12-15, along with pendentelite interest and other charges. The date of default for both the cash credit and overdraft facilities was stated as 2015-12-31. The amount in default for cash credit was Rs.

…

## Issues and analysis

### Issue 1: Whether a financial debt exists as defined …

**Ratio:** Section 5(8) of the IBC, 2016 defines 'financial debt' as a debt along with interest, if

…

**Reasoning:** The tribunal relied on the documents presented by the petitioner, including the loan

…

**Interpretation:** The interpretation of Section 5(8) focuses on whether the debt was disbursed

…

**Application:** The tribunal applied this definition to the facts, noting that the bank had

…

## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Bank of…
- **Respondents:** CAREWAY AGRO…

## Timeline

- **2012-12-27 — Initial Cash Credit…**: Rs. 4 crores cash credit…
- **2013-09-25 — Credit Facilities…**: Existing credit facilities…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/careway-agro-procurement-pvt-ltd-ib-238-nd-2019-409390c4