# In the matter of Anakkara Food Processing and Exports Pvt. Ltd.

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01590. The case involves a petition filed by Dhanalaxmi Bank Limited, the Financial Creditor, against…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01590
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anakkara-food-processing-and-exports-pvt-ltd-1273f83d

## Summary

### Background

The case involves a petition filed by Dhanalaxmi Bank Limited, the Financial Creditor, against M/s. Anakkara Food Processing and Exports Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default amount of Rs. 1,93,80,517.11/-. The Corporate Debtor contested the petition, alleging that the documents submitted by the Financial Creditor were forged and that the claim was barred by limitation. The Financial Creditor argued that the Corporate Debtor had acknowledged the debt and that the petition was filed within the prescribed time limit.

## Facts

Dhanalaxmi Bank Limited, the Financial Creditor, sanctioned various credit facilities to M/s. Anakkara Food Processing and Exports Pvt. Ltd., the Corporate Debtor, including a Cash Credit Loan Facility of Rs. 1,50,00,000/- and a term loan facility of Rs. 50,00,000/- on 17.03.2015. Subsequently, a Short-Term Loan facility of Rs. 14,00,000.00 was sanctioned on 23.10.2018. The Corporate Debtor created an equitable mortgage of immovable property by depositing the Sale Deed No. 620/2004 as security. The Corporate Debtor executed mortgage extension letters and acknowledged the liability on multiple occasions, including 22.02.2018, 30.11.2020, and 30.09.2022. The account was declared NPA on 24.12.2019. The Financial Creditor issued demand notices under the SARFAESI Act. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the IBC, 2016, allows a financial creditor to initiate CIRP against a

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**Reasoning:** The NCLT found that there was a default in the payment of the financial debt, which was

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** Dhanalaxmi Bank…
- **Respondents:** M/s. Anakkara…

## Timeline

- **2015-03-17 — Loan Sanc…**: Financial Creditor sanctioned Cash Credit…
- **2015-03-21 — Sanction Terms…**: Sanction terms were duly…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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