# In the matter of Amzen Transportation Industries Private Limited Company Petition No. (IB)- 3 (ND)-2020

> NCLT judgment dated 2022-05-04. Citation: TCN-2022-NCLT-02888. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 May 2022
- **Citation:** TCN-2022-NCLT-02888
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amzen-transportation-industries-private-limited-company-petition-no-ib-3-nd-2020-6d58bc5e

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Amzen Transportation Industries Private Limited, the corporate debtor. The application was filed due to the corporate debtor's default in repayment of a term loan facility sanctioned by IDBI Bank. The loan was classified as NPA on 29.06.2016, and a loan recall notice was issued on 28.09.2016. IDBI Bank also initiated proceedings under Section 13(2) of the SARFAESI Act, 2002, and filed an application before the Debt Recovery Tribunal for recovery of Rs. 105,99,74,991.70/-.

## Facts

IDBI Bank Limited, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Amzen Transportation Industries Private Limited, the corporate debtor. A term loan facility of Rs. 130 Crore was sanctioned to the corporate debtor by IDBI Bank, with a sanction letter dated 04.02.2010 and a modification letter dated 16.03.2010. The loan agreement was executed on 17.03.2010. The corporate debtor defaulted in repayment, leading to the account being classified as NPA on 29.06.2016. IDBI Bank issued a loan recall notice on 28.09.2016 and initiated proceedings under Section 13(2) of the SARFAESI Act, 2002. An application was filed before the Debt Recovery Tribunal on

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is barred by …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT considered the arguments from both sides regarding the limitation period. The

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**Interpretation:** The court interpreted Section 7 of the IBC in conjunction with Section 18 of

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**Application:** The NCLT found that the corporate debtor had made multiple payments between

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## Parties

- **Judges:** DHARMINDER…; SUMITA PURK…; +1 more
- **Appellants:** IDBI Bank L…
- **Respondents:** Amzen Transportati…; Amzen Transportati…

## Timeline

- **2010-02-04 — Sanction…**: IDBI Bank sanctioned a term loan facility to Amzen Transportation Industries Private…
- **2010-03-16 — Modification…**: Modification letter issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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