# In the matter of Feedback Energy Distribution Company Ltd.

> NCLT judgment dated 2023-12-12. Citation: TCN-2023-NCLT-00273. 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-00273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/feedback-energy-distribution-company-ltd-65917be4

## 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 respondent, however, contended that there was no default and the documents submitted by the applicant were fabricated. The respondent also argued that the debt was not crystalized and DRT proceedings were pending.

## Facts

IndusInd Bank Limited (the Applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Feedback Energy Distribution Co. Ltd. (the Respondent), seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Applicant claimed that the Respondent defaulted on financial debt amounting to 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. The Applicant had sanctioned credit facilities to the Respondent, including cash credit, term loans, and a Guaranteed Emergency Credit Line (GECL) facility. The Respondent argued that there was no default, the debt was not crystalized, and the documents submitted by the Applicant were

…

## 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 may admit the application

…

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

…

**Interpretation:** Section 7 of the IBC provides the procedure for initiating CIRP by a financial

…

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

…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** IndusInd Bank…
- **Respondents:** M/s Feedback…; M/s Feedback…
- **Advocates:** Vidu…; Gaurav…; +3 more

## Timeline

- **2012-10-29 — Incorporation of…**: Feedback Energy Distribution…
- **2019-03-30 — Sanction…**: Applicant 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)

---

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/feedback-energy-distribution-company-ltd-65917be4