# In the matter of Cochin Frozen Food Exports Pvt. Ltd.

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01208. The case involves a petition filed by Asset Reconstruction Company (India) Limited, the…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cochin-frozen-food-exports-pvt-ltd-1749f207

## Summary

### Background

The case involves a petition filed by Asset Reconstruction Company (India) Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate a Corporate Insolvency Resolution Process (CIRP) against Cochin Frozen Food Exports Pvt. Ltd., the Corporate Debtor. The Financial Creditor is an assignee of The South Indian Bank Ltd. The Corporate Debtor had availed a loan from The South Indian Bank Ltd, which was later assigned to the Asset Reconstruction Company (India) Limited. The Corporate Debtor defaulted on the loan repayment, leading to the filing of this petition.

## Facts

Cochin Frozen Food Exports Pvt. Ltd. (Corporate Debtor) availed a loan of Rs. 37,70,000 from The South Indian Bank Ltd on 2016-06-30, secured by hypothecation of machinery, vehicles, stock, and other movable properties. The loan amount was subsequently modified multiple times, reaching Rs. 48,64,00,000 by 2020-10-20. The Corporate Debtor defaulted on the loan payments, leading The South Indian Bank Ltd to classify the loan as NPA on 2020-06-30. The South Indian Bank Ltd assigned the loan to Asset Reconstruction Company (India) Limited (Financial Creditor) via an assignment deed dated 2022-02-23. The Financial Creditor filed a petition under Section 7 of the IBC, 2016, for a default amount of Rs. 41,54,95,227. The Corporate Debtor argued that the Financial Creditor,

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## Issues and analysis

### Issue 1: Whether the petitioner is competent to maintain …

**Ratio:** Section 5(7) of IBC 2016 defines 'financial creditor' to include an assignee of such

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**Reasoning:** The court reasoned that the debtor cannot dictate the terms upon the creditor or its

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**Interpretation:** The interpretation of Section 5(7) of the IBC is that it includes assignees of

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**Application:** The petitioner, Asset Reconstruction Company (India) Limited, is an assignee of

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## Parties

- **Judges:** Shri. P. Mo…; SHRI. SATYA…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Cochin Frozen…

## Timeline

- **2016-06-30 — Loan Ava…**: Cochin Frozen Food Exports Pvt. Ltd. availed a loan of Rs.37,70,000/- from The South…
- **2020-06-30 — Loan Classifie…**: The South Indian Bank Ltd classified the…

## 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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