# In the matter of Shree Bhomika International Limited IB-324-(ND)-2019

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02561. The case involves an application filed by Stressed Assets Stabilization Fund (SASF) under…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-bhomika-international-limited-ib-324-nd-2019-c2c0abd6

## Summary

### Background

The case involves an application filed by Stressed Assets Stabilization Fund (SASF) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process (CIRP) against Shree Bhomika International Limited due to alleged default in settling an amount of Rs. 187,16,01,819/-. The debt includes interest component towards the financial credit given by the applicant. The application is based on a Foreign Currency Loan Agreement entered into by the Corporate Debtor with IDBI, later assigned to SASF.

## Facts

In November 1996, Shree Bhomika International Limited (Corporate Debtor) entered into a Foreign Currency Loan Agreement with IDBI, receiving a loan of US $23,000. Subsequent amendments to the loan agreement occurred in March and April 1999. A memorandum of entry recording mortgage by deposit of the original sub lease agreement dated 26.11.1995 for the property located at plot No. 59-1, Noida export Processing Zone (NEPZ), Noida, Uttar Pradesh was created in March 1999. An agreement for pledge of shares was executed between IDBI Bank and the promoters of the corporate debtor in May 2000. The first date of default by the corporate debtor was July 2, 2001, and a recall notice was issued by IDBI Bank in January 2004. IDBI Bank transferred the facilities granted to the

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## Issues and analysis

### Issue 1: Whether the applicant has provided sufficient documentation to prove a default by the respondent as …

**Ratio:** Section 3(12) of the Insolvency and Bankruptcy Code, 2016 defines 'default' as

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**Reasoning:** The tribunal perused the documents filed by the applicant and heard the submissions of

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**Interpretation:** The interpretation of Section 3(12) requires the applicant to demonstrate that

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**Application:** In this case, the applicant presented evidence of a loan agreement, subsequent

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Stressed Assets…
- **Respondents:** Shree Bhomika…

## Timeline

- **1996-11-08 — Foreign Currency Loan…**: Corporate Debtor entered into a Foreign…
- **1999-03-24 — Amendment to Loan…**: IDBI issued a letter amending the terms of…

## 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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