# In the matter of Feedback Infra Private Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03120. Federal Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03120
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/feedback-infra-private-limited-f723d98a

## Summary

### Background

Federal Bank Limited filed a petition 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 bank had provided credit facilities to the Corporate Debtor, including term loans and cash credit facilities. The Corporate Debtor also provided corporate guarantees to secure loans availed by M/s Feedback Energy Distribution Company Limited from the bank. The Corporate Debtor defaulted on repayment of the credit facilities.

## Facts

Federal Bank Limited (Financial Creditor) provided credit facilities (term loan and cash credit) to Feedback Infra Private Limited (Corporate Debtor). The Corporate Debtor also acted as a corporate guarantor for loans availed by M/s Feedback Energy Distribution Company Limited (Principal Borrower). The Corporate Debtor defaulted in repaying the credit facilities. The Financial Creditor sanctioned multiple loans to the Corporate Debtor, including a term loan of Rs. 40,00,00,000/- on 22.08.2019 and a working capital/term loan of Rs. 10 Crores on 18.02.2020. The Corporate Debtor also availed a loan of Rs. 11,60,00,000/- under the Emergency Guarantee Credit Line (GECL) on 17.12.2020. The Corporate Debtor's loan account was classified as Non-Performing Asset (NPA) on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** A default includes not only the default in respect of a financial debt qua the Applicant

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**Reasoning:** The court considered the dates of default mentioned by the applicant, which were

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**Interpretation:** The court interpreted the definition of 'default' under Section 7(1) of the IBC

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**Application:** The court applied this interpretation to the facts, finding that the Corporate

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## Parties

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

## Timeline

- **2019-08-22 — Sanction of T…**: Financial Creditor sanctioned a term loan of…
- **2020-02-18 — Sanction of Working…**: Financial Creditor sanctioned a working capital/term loan of Rs. 10 Crores to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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