# In the matter of Core Indo Ispat Private Limited IBA-877-2019

> NCLT judgment dated 2019-10-05. Citation: TCN-2019-NCLT-01082. The case pertains to an Insolvency and Bankruptcy Application (IBA) filed under Section 7 of…

- **Court:** NCLT
- **Order date:** 5 Oct 2019
- **Citation:** TCN-2019-NCLT-01082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/core-indo-ispat-private-limited-iba-877-2019-0fc4aadc

## Summary

### Background

The case pertains to an Insolvency and Bankruptcy Application (IBA) filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by CFM Asset Reconstruction Private Limited, the Financial Creditor, against Core Indo Ispat Private Limited, the Corporate Debtor. The Corporate Debtor defaulted on a repayment of ₹25,43,16,355.85 as of 2018-12-03. The Financial Creditor initiated the Corporate Insolvency Resolution Process (CIRP).

## Facts

CFM Asset Reconstruction Private Limited filed an Insolvency and Bankruptcy Application (IBA) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Core Indo Ispat Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). Core Indo Ispat Private Limited defaulted on a repayment of ₹25,43,16,355.85 as of 2018-12-03. Indus Ind Bank had sanctioned credit facilities to Core Indo Ispat Private Limited for ₹25,00,00,000 for working capital. The Corporate Debtor failed to repay the loan, leading Indus Ind Bank to issue a demand notice on 2018-05-04 for ₹23,42,42,946. The account was classified as a Non-Performing Asset (NPA) on 2016-09-30. Indus Ind Bank assigned the debt to CFM Asset Reconstruction Private Limited through

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## Issues and analysis

### Issue 1: Whether the assignment deeds executed by Indus Ind Bank in favor of CFM Asset Reconstruction …

**Ratio:** Assignment takes place between the assignor and assignee, and there is no prerequisite

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**Reasoning:** The court reasoned that the assignment in favor of the applicant was communicated to the

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**Interpretation:** The interpretation is that intimation of assignment in favor of the assignment

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**Application:** The court applied this principle to the facts by stating that either by

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Respondents:** Core Indo Ispat…

## Timeline

- **2014-08-25 — Execution of A…**: Corporate Debtor executed Master General Terms Agreement, Multi-Facility Loan Agreement,…
- **2014-08-25 — Execution of Letter of…**: The Promoters-Directors of the debtor company namely, Mr. Ashish K. Nevatia, Mrs. Nidhi…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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