# In the matter of JVL Agro Industries Ltd. CP(IB) 223- ALD-2018

> NCLT judgment dated 2018-07-25. Citation: TCN-2018-NCLT-01071. Standard Chartered Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Jul 2018
- **Citation:** TCN-2018-NCLT-01071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jvl-agro-industries-ltd-cpib-223-ald-2018-c4e79070

## Summary

### Background

Standard Chartered Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against JVL Agro Industries Ltd. The bank sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default of INR 63,77,99,916. The corporate debtor had a banking relationship with the financial creditor since 2007-2008, with credit facilities extended and amended over time. The account was classified as a non-performing asset (NPA) on April 8, 2016, according to RBI guidelines.

## Facts

Standard Chartered Bank, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against JVL Agro Industries Ltd, the corporate debtor. The total amount claimed to be in default is INR 63,77,99,916 as of May 31, 2018. The corporate debtor's account was classified as a non-performing asset on April 8, 2016. The corporate debtor started its banking relationship with the financial creditor in 2007-2008, receiving credit facilities up to INR 97,50,00,000. These facilities were secured by various securities, including charges on current and fixed assets. The corporate debtor was reminded of its payment obligations, but continued to default. The corporate debtor filed a Company Application, CA− (IB) 164/2018, raising objections

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## Issues and analysis

### Issue 1: Whether as per Circular of RBI dated 12.2.2018 read with newly inserted sections 35AA and 35AB of …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) overrides other laws, including RBI circulars,

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**Reasoning:** The NCLT reasoned that the RBI circular is addressed to banks and is in the nature of

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**Interpretation:** The RBI circulars are intended to work in harmony with the IBC and not to make

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**Application:** In this case, the NCLT found that the application filed by the Financial

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## Parties

- **Judges:** SH. V.P.…; Saroj Ra…
- **Respondents:** JVL Agro Industrie…

## Timeline

- **2016-04-08 — Account Classified as…**: The account of the Corporate Debtor was classified as a non-performing asset in…
- **2017-05-05 — Financial Creditor…**: The Financial Creditor reminded the Corporate Debtor of its payment obligations via…

## 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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