# In the matter of Feedback Infra Private Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03183. Federal Bank Limited, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/feedback-infra-private-limited-384b9a13

## Summary

### Background

Federal Bank Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Feedback Infra Private Limited, the corporate debtor. The financial creditor had provided various credit facilities, including term loans and cash credit facilities, to the corporate debtor. The corporate debtor also executed a corporate guarantee in favor of the applicant to facilitate the principal borrower, M/s Feedback Energy Distribution Company Ltd., to secure loans from the applicant. The corporate debtor defaulted in repayment of the credit facilities availed from the financial creditor. The financial creditor issued a demand notice under Section 13(2)

…

## Facts

Federal Bank Limited (Financial Creditor) provided credit facilities to Feedback Infra Private Limited (Corporate Debtor), including term loans and cash credit facilities. The Corporate Debtor also executed a Corporate Guarantee in favor of the Financial Creditor to facilitate the principal borrower, M/s Feedback Energy Distribution Company Ltd. The Corporate Debtor defaulted in repayment of the credit facilities. The Financial Creditor issued a Demand Notice under Section 13(2) of the SARFAESI Act, 2002, on 23.09.2021, but the Corporate Debtor failed to repay the loan amount. The Financial Creditor filed O.A. No. 386 of 2022/TA No. 400/2022 for the recovery of dues from the principal borrower and the Corporate Debtor. The Financial Creditor recalled the entire loan

…

## Issues and analysis

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

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

…

**Reasoning:** The court reasoned that the corporate debtor had defaulted in repayment of its debt to

…

**Interpretation:** Section 7 of the IBC, 2016 provides the mechanism for a financial creditor to

…

**Application:** The court applied the provisions of Section 7 of the IBC, 2016 to the facts of

…

## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Federal Bank…
- **Respondents:** M/s. Feedback…

## Timeline

- **2009-09-07 — Board Resolution/Power…**: Board Resolution/power attorney issued by the Board of Director of the FC, authorizing…
- **1990-06-27 — Incorporation of…**: The Corporate Debtor was incorporated in terms of provisions of Companies Act and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

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-infra-private-limited-384b9a13