# In the matter of Feedback Energy Distribution Company Ltd.

> NCLT judgment dated 2023-12-12. Citation: TCN-2023-NCLT-00275. IndusInd Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Dec 2023
- **Citation:** TCN-2023-NCLT-00275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/feedback-energy-distribution-company-ltd-0b259b07

## Summary

### Background

IndusInd Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Feedback Energy Distribution Co. Ltd. The application was filed due to alleged default on financial debt. The applicant claimed that the respondent defaulted on payments, leading to the account being classified as Non-Performing Asset (NPA). The applicant also relied on a Form D (Record of Default) from NeSL to substantiate the claim.

## Facts

IndusInd Bank Limited sanctioned credit facilities to Feedback Energy Distribution Co. Ltd., including cash credit and term loans, totaling Rs. 105 Crores, followed by an additional working capital term loan facility of Rs. 18.75 crores under the Guaranteed Emergency Credit Line ('GECL'). The total outstanding financial debt claimed by IndusInd Bank was Rs. 124,79,99,510.77 as of 31.05.2023, with the date of default being 10.10.2021, leading to the account being classified as NPA on 08.01.2022. IndusInd Bank issued a Loan Recall Notice-cum-invocation of Guarantees on 31.01.2022. Feedback Energy Distribution Co. Ltd. proposed a Comprehensive Debt Restructuring Proposal ('CDRP') in August 2021 and held joint lenders meetings, but IndusInd Bank did not agree to the

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## Issues and analysis

### Issue 1: Whether the application filed by IndusInd Bank Limited under Section 7 of the Insolvency and …

**Ratio:** Section 7(5) of the IBC states that the Adjudicating Authority shall, within 14 days of

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**Reasoning:** The NCLT found that the application was complete and that the applicant had established

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**Interpretation:** Section 7 of the IBC provides the procedure for initiating the Corporate

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**Application:** The NCLT applied Section 7(5) of the IBC to the facts of the case and found

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** IndusInd Bank…
- **Respondents:** M/s Feedback…; M/s Feedback…

## Timeline

- **2012-10-29 — Incorporation of…**: Feedback Energy Distribution…
- **2019-03-30 — Sanction…**: IndusInd Bank sanctioned credit…

## 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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