# In the matter of Agson Global Private Limited

> NCLT judgment dated 2024-01-30. Citation: TCN-2024-NCLT-02858. The case involves an application filed by Indian Bank (formerly Allahabad Bank) against Agson…

- **Court:** NCLT
- **Order date:** 30 Jan 2024
- **Citation:** TCN-2024-NCLT-02858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agson-global-private-limited-167fb731

## Summary

### Background

The case involves an application filed by Indian Bank (formerly Allahabad Bank) against Agson Global Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Indian Bank, as a member of a consortium of 11 banks, extended credit/loan facilities to Agson Global. The corporate debtor defaulted on the repayment, leading to the application for initiating the Corporate Insolvency Resolution Process (CIRP). The bank seeks to recover outstanding dues. The corporate debtor argued that restructuring proposal is under consideration and transfer of account to NARCL is being explored.

## Facts

Indian Bank (formerly Allahabad Bank), a member of a consortium of 11 banks, extended credit/loan facilities to Agson Global Private Limited. The total credit facility extended was Rs. 29.40 Cr (Fund based Rs. 15.40 Cr and Non-Fund based Rs. 14 Cr). The applicant also extended the credit facility by issuing LC. The cash credit facility extended by the applicant to the corporate debtor was Rs. 24.60 Cr and the LC facility was Rs. 24.50 Cr. The term loan facility extended by the Applicant to CD vide letter dated 01.02.2018 was of Rs. 29.40 Cr. Subsequently on 24.06.2019 the facility was enhanced to Rs. 33.60 Cr. On review-cum-enhancement of existing worth capital limit, the term loan was enhanced to Rs.48.60 Cr. The corporate debtor defaulted on repayment, with the total

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, should be admitted given the default in …

**Ratio:** Section 7(5)(a) of the IBC, 2016, states that the Adjudicating Authority must be

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**Reasoning:** The court noted that the corporate debtor had defaulted on its repayment obligations, and

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**Interpretation:** The legal issue is interpreted based on the provisions of Section 7 of the IBC,

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Indian…
- **Respondents:** Agson Global…; M/s Agson Global…

## Timeline

- **1994-01-01 — Incorporation of…**: The corporate debtor, Agson Global Private…
- **2018-02-01 — Sanction Lett…**: Facilities sanctioned vide…

## 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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