# In the matter of Frost International Limited CP (IB) 973-MB-C-I-2020

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04680. The case involves a petition filed by Bank of India Limited, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04680
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/frost-international-limited-cp-ib-973-mb-c-i-2020-8e0ffdaa

## Summary

### Background

The case involves a petition filed by Bank of India Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Frost International Limited, the Corporate Debtor. The petition was filed before the Adjudicating Authority on 25.03.2022, based on the Corporate Debtor's default in repaying a loan of Rs.756.75 Crore, along with interest amounting to Rs.238,39,26,438.43. The total amount claimed to be in default is Rs.8,72,58,08,402.27. The Corporate Debtor had availed various credit facilities from the Financial Creditor since 1996, with the date of default stated as 12.04.2018. The Corporate Debtor raised objections, including the maintainability of the petition due

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## Facts

Bank of India Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Frost International Limited, the Corporate Debtor. The petition was filed on 25.03.2022, claiming a default of Rs.756.75 Crore in loan repayment, along with interest of Rs.238,39,26,438.43, totaling Rs.8,72,58,08,402.27. The date of default was stated as 12.04.2018. The Corporate Debtor had availed various credit facilities since 1996, sanctioned vide letter dated 05.09.2017. These facilities included Cash Credit, EPC/FBP, Total FBL, LC, LoC for Buyers Credit, ILC, Bank Guarantee, and Credit Equivalent Exposure. The Corporate Debtor was liable to repay Rs.606,17,29,608.48 as

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial …

**Ratio:** The Supreme Court in Swiss Ribbons Pvt. Ltd. & Ors. Vs. Union of India & Ors.

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and perused the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the Financial Creditor provided evidence of debt and default,

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Bank of India…
- **Respondents:** FROST INTERNATIONA…
- **Advocates:** Nishit D…; Ravi K…

## Timeline

- **1996-01-01 — Credit Facilities…**: The Corporate Debtor had availed various credit facilities sanctioned by the Applicant…
- **2017-09-05 — Sanction…**: The Financial Creditor sanctioned total of Rs. 756.75 Crores vide sanction letter dated…

## 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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