# In the matter of Agson Global Private Limited

> NCLT judgment dated 2024-01-30. Citation: TCN-2024-NCLT-02852. Indian Bank (formerly Allahabad Bank) filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 30 Jan 2024
- **Citation:** TCN-2024-NCLT-02852
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agson-global-private-limited-96c1370b

## Summary

### Background

Indian Bank (formerly Allahabad Bank) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Agson Global Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The bank, as a member of a consortium of 11 banks, had extended credit facilities to the corporate debtor. The corporate debtor defaulted on repayment, leading to the application before the NCLT.

## Facts

Indian Bank (formerly Allahabad Bank), a member of a consortium of 11 banks, extended credit facilities to Agson Global Private Limited. The total credit facility extended by the applicant 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 the corporate debtor was Rs. 29.40 Cr. vide letter dated 01.02.2018. 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

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, filed by Indian Bank against Agson Global …

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

…

**Reasoning:** The NCLT considered the submissions of both parties and perused the record. It noted that

…

**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

…

**Application:** The NCLT applied the provisions of Section 7(5)(a) of the IBC to the facts of

…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Indian…
- **Respondents:** Agson Global…; M/s Agson Global…
- **Advocates:** Adv Rajesh Kumar…; Anant G…; +8 more

## Timeline

- **1994-01-01 — Incorporation of…**: Agson Global Private…
- **2018-02-01 — Sanction Lett…**: Term loan facility of Rs. 29.40 Cr 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agson-global-private-limited-96c1370b