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

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00445. 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-00445
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-mega-agro-anaj-limited-cp585-of-2021-9ef1fd36

## 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, citing an unresolved financial debt of Rs. 62,21,30,534.65. The petitioner claimed that the respondent had approached them for credit facilities, which were sanctioned and later renewed and enhanced. The respondent allegedly failed to repay the outstanding loan amount, leading to the account being classified as a Non-Performing Asset (NPA).

## Facts

Axis Bank Limited, the petitioner, sought to initiate CIRP against India Mega Agro-Anaj Private Limited, the respondent, due to an outstanding 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 2014-03-01. These facilities were subsequently renewed and enhanced, including a fresh term loan of Rs. 5 crores and credit facilities of Rs. 9 crores on 2014-11-25, increasing the existing limits to Rs. 20 Crores with an additional term loan of Rs. 5 Crores. Further enhancements occurred on 2015-10-28, raising the limits to Rs. 35 Crores, and again on 2017-03-23, reaching Rs. 40 Crores. The respondent failed to repay the outstanding amount, leading Axis Bank to classify

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## Issues and analysis

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

**Ratio:** Section 7(1) of the Insolvency and Bankruptcy Code (IBC) allows a financial creditor,

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

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**Interpretation:** The interpretation of Section 7(1) emphasizes the individual right of a

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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…**: Rs. 11 Crores…
- **2014-09-15 — Working Capital…**: Working Capital…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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