# In the matter of Neesa Agritech and Foods Ltd. IA No. 76-2020 in C.P. (I.B) No. 423-NCLT-AHM-2018

> NCLT judgment dated 2020-09-28. Citation: TCN-2020-NCLT-00516. M/s. Neesa Agritech and Foods Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 28 Sept 2020
- **Citation:** TCN-2020-NCLT-00516
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/neesa-agritech-and-foods-ltd-ia-no-76-2020-in-cp-ib-no-423-nclt-ahm-2018-afaa82ad

## Summary

### Background

M/s. Neesa Agritech and Foods Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, as an operational creditor/applicant. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP). Several financial creditors, including Small Industries Development Bank of India (SIDBI), Central Bank of India (CBI), and ICICI Bank Ltd., filed objections to the application. Paisalo Digital Ltd. also filed an Interlocutory Application objecting to the admission of the petition.

## Facts

M/s. Neesa Agritech and Foods Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The applicant claimed to be an operational creditor. SIDBI, CBI, and ICICI Bank Ltd. objected, citing suppression of facts, malicious intent, and incompleteness of the application. SIDBI claimed the applicant suppressed information regarding mortgage of property and loans granted to group concerns. CBI stated the applicant had applied for overdraft facilities and executed security documents. ICICI Bank Ltd. reiterated similar objections. Paisalo Digital Ltd. objected, seeking payment of outstanding dues as per an arbitral award. The Adjudicating Authority found that the applicant company held an EGM flouting Companies Act norms

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by M/s. …

**Ratio:** An application under Section 10 of the IBC must be filed by a corporate applicant as

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**Reasoning:** The Adjudicating Authority found that the applicant company had held an Extra-Ordinary

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**Interpretation:** Section 10 of the IBC requires that the application be filed by a corporate

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**Application:** In this case, the applicant company failed to comply with the provisions of the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Neesa Agritech…; Small Industries…

## Timeline

- **2010-08-01 — Loan Facilitie…**: The corporate debtor availed loan…
- **2013-01-01 — Last AGM and Balance…**: Last annual general meeting was conducted in the year 2013 and the last balance sheet was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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