# In the matter of Suman Agritech Limited CP 1003 (IB)-MB-2019

> NCLT judgment dated 2019-08-27. Citation: TCN-2019-NCLT-01760. Allahabad Bank filed an application (CP 1003/2019) under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 27 Aug 2019
- **Citation:** TCN-2019-NCLT-01760
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suman-agritech-limited-cp-1003-ib-mb-2019-b9dbc677

## Summary

### Background

Allahabad Bank filed an application (CP 1003/2019) under Section 7 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Suman Agritech Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was filed on 2019-03-11.

## Facts

Allahabad Bank, the Financial Creditor, filed an application under Section 7 of the I&B Code, 2016, against Suman Agritech Limited, the Corporate Debtor, to initiate CIRP. The Applicant had extended a loan of ₹64.5 crore to the Corporate Debtor, which was part of a total loan of ₹137.5 crore extended by a consortium of banks. The loan facility was renewed several times. As of 2019-01-31, the total outstanding amount in default was ₹56,89,34,000/-. The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 2016-09-30, which was also the date of default. The Applicant had filed a notice under Section 13(2) of the SARFAESI Act, recalling an outstanding amount of ₹43,97,81,963/-. The Applicant submitted a Consumer Credit Information Report (CIBIL)

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## Issues and analysis

### Issue 1: Whether the application filed by Allahabad Bank under Section 7 of the I&B Code, 2016, for …

**Ratio:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP against a

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**Reasoning:** The court found that the application was complete, the debt existed, and the default

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**Interpretation:** Section 7 of the I&B Code provides the mechanism for a financial creditor

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**Application:** The court applied Section 7 to the facts of the case, finding that Allahabad

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** Allahabad…
- **Respondents:** Suman Agritech…

## Timeline

- **2010-08-16 — Loan San…**: The Applicant extended a loan of…
- **2012-03-13 — Facility R…**: The loan facility was…

## 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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