# In the matter of Ananya Wood Private Limited

> NCLT judgment dated 2024-02-02. Citation: TCN-2024-NCLT-02787. Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLT-02787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ananya-wood-private-limited-739c883c

## Summary

### Background

Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ananya Wood Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a private limited company incorporated on 18/11/2016. The Financial Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 13,78,35,737.34 as on 31.08.2022, with the default occurring on February 14, 2020, when the account was declared a Non-Performing Asset (NPA). The Financial Creditor sanctioned various credit facilities to the Corporate Debtor, including cash credit and working capital consortium agreements. The Corporate Debtor argued that the financial creditor arbitrarily stopped the Buyer's Credit facilities, leading to the NPA

…

## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ananya Wood Private Limited, the Corporate Debtor. The Corporate Debtor is a private limited company incorporated on 18/11/2016. The Financial Creditor claimed a default of Rs. 13,78,35,737.34 as on 31.08.2022, with the default occurring on February 14, 2020, when the account was declared a Non-Performing Asset (NPA). The Financial Creditor had sanctioned Cash Credit (CC) of Rs. 6.00 Crore and FLC of Rs. 4.00 Crore totalling Rs. 10 Crore on 28.08.2016. A working capital consortium agreement was executed on 23.12.2016 for Rs. 42.30 Crore. Supplemental Working Capital Consortium Agreements were executed on 16.05.2017 and 25.01.2019, each for Rs.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** The Adjudicating Authority relied on Section 7 of the Insolvency and Bankruptcy Code,

…

**Reasoning:** The Adjudicating Authority reasoned that the Financial Creditor had disbursed the debt

…

**Interpretation:** The Adjudicating Authority interpreted Section 7 of the Insolvency and

…

**Application:** The Adjudicating Authority applied the ratio and reasoning to the facts of the

…

## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Ananya Wood…

## Timeline

- **2016-11-18 — Incorporation of…**: Ananya Wood Private Limited…
- **2016-08-28 — Sanction of Cash Credit…**: Financial Creditor sanctioned Cash Credit (CC) of Rs. 6.00 Crore and FLC of Rs. 4.00…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/ananya-wood-private-limited-739c883c