# In the matter of India Mega Agro - Anaj Limited C.P.585 OF 2021

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00427. Axis Bank Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-mega-agro-anaj-limited-cp585-of-2021-742e6ccb

## Summary

### Background

Axis Bank Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against India Mega Agro-Anaj Private Limited, claiming a financial debt of Rs. 62,21,30,534.65. The petitioner, Axis Bank, contended that the respondent, India Mega Agro-Anaj Private Limited, had approached them for credit facilities, which were sanctioned and subsequently renewed and enhanced. Despite reminders, the respondent failed to repay the outstanding loan amount, leading to the account being classified as a Non-Performing Asset (NPA). The petitioner issued loan recall notices and invoked the provisions of the SARFAESI Act. The respondent denied the allegations, arguing that the petitioner

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## Facts

Axis Bank Limited, the Petitioner, sought to initiate Corporate Insolvency Resolution Process (CIRP) against India Mega Agro-Anaj Private Limited, the Respondent, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Petitioner claimed a financial debt of Rs. 62,21,30,534.65. The Respondent had approached the Petitioner for credit facilities, which were sanctioned initially for Rs. 11 Crores on 01.03.2014. These facilities were subsequently renewed and enhanced, including a fresh Term Loan of Rs. 5 crores and credit facilities of Rs. 9 crores on 25.11.2014, increasing the limits to Rs. 20 Crores and a Term Loan of Rs. 5 Crores. Further enhancements occurred on 28.10.2015, increasing the limits to Rs. 35 Crores, and again on 23.03.2017, reaching Rs. 40

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## Issues and analysis

### Issue 1: Whether the Financial Creditor (Axis Bank) has the authority to file the present petition under …

**Ratio:** Section 7(1) of the IBC allows a financial creditor, either individually or jointly with

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**Reasoning:** The Tribunal reasoned that Section 7(1) explicitly grants the financial creditor the

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**Interpretation:** Section 7(1) of the IBC is interpreted to mean that any financial creditor can

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**Application:** The Tribunal applied the ratio to the facts by noting that Axis Bank, as a

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## Parties

- **Judges:** ANURADHA SANJAY…; H.V. Subb…
- **Appellants:** Axis Bank L…
- **Respondents:** India Mega Agro…; M/s Indian Mega…

## Timeline

- **2014-03-01 — Sanction…**: Sanction Letter issued…
- **2014-09-15 — Working Capital…**: Working Capital…

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