# In the matter of Good-Day Foods Private Limited CP (IB) No.555-MB-IV-2021

> NCLT judgment dated 2023-01-05. Citation: TCN-2023-NCLT-05178. The case involves an application filed by Small Industries Development Bank of India (SIDBI)…

- **Court:** NCLT
- **Order date:** 5 Jan 2023
- **Citation:** TCN-2023-NCLT-05178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/good-day-foods-private-limited-cp-ib-no555-mb-iv-2021-09fe9b5a

## Summary

### Background

The case involves an application filed by Small Industries Development Bank of India (SIDBI) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Good Day Foods Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). SIDBI, as the Financial Creditor, claims a default amount of Rs. 1,32,55,424 as of 10.05.2021. The Corporate Debtor had approached SIDBI for various credit facilities, which were granted in the form of term loans. Despite availing these facilities, the Corporate Debtor failed to repay the dues, leading to the loan account being classified as a Non-Performing Asset (NPA) on 08.07.2019. SIDBI issued recall notices and a demand notice under the SARFAESI Act, but the Corporate Debtor failed to repay the

…

## Facts

Small Industries Development Bank of India (SIDBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Good Day Foods Private Limited to initiate Corporate Insolvency Resolution Process (CIRP). The claimed default amount was Rs. 1,32,55,424 as of 10.05.2021. Good Day Foods Private Limited had approached SIDBI for credit facilities, which were granted as term loans. A term loan of Rs. 70.00 Lakhs was sanctioned on 03.08.2015 and disbursed in two tranches on 17.08.2015 and 19.11.2015. Further, a term loan of Rs. 130.00 Lakhs was sanctioned on 14.02.2018 and disbursed in various tranches between 28.02.2018 and 31.08.2018. The Corporate Debtor failed to repay the dues, leading to the loan account being classified as a

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

…

**Reasoning:** The court examined the application and supporting documents submitted by the Financial

…

**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

…

**Application:** The court found that SIDBI had provided sufficient evidence of debt and default

…

## Parties

- **Judges:** KISHORE VEMULAPALL…; Manoj Kumar…
- **Appellants:** Small Industries…
- **Respondents:** Good-Day Foods…; Good Day Foods…

## Timeline

- **2015-06-29 — Application for Credit…**: Corporate Debtor approached the Financial Creditor for grant/sanction of various credit…
- **2015-08-03 — Sanction of T…**: Financial Creditor granted/sanctione…

## Legal provisions

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

---

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/good-day-foods-private-limited-cp-ib-no555-mb-iv-2021-09fe9b5a