# In the matter of Indison Agro Foods Limited TP-123-MP-2019 {CP(IB)-137-2019}

> NCLT judgment dated 2023-03-03. Citation: TCN-2023-NCLT-04324. The case involves an application filed by Indian Bank (formerly Allahabad Bank) under Section 7…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indison-agro-foods-limited-tp-123-mp-2019-cpib-137-2019-5a8e26b8

## Summary

### Background

The case involves an application filed by Indian Bank (formerly Allahabad Bank) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indison Agro Foods Limited (Corporate Debtor). The financial creditor claims a default amount of Rs 98,76,78,524/-, comprising a principal amount of Rs 68,21,00,000/- and interest of Rs 30,55,78,524/-, with a default date of 28.02.2016. The corporate debtor is a public limited company incorporated under the Companies Act, 1956. The financial creditor had provided various credit facilities to the corporate debtor under a master restructuring loan agreement. The corporate debtor's account was declared a Non-Performing Asset (NPA) on 28.02.2016, and a recall notice

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## Facts

On 28.01.2019, Indian Bank (formerly Allahabad Bank) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Indison Agro Foods Limited. The bank claimed a default of Rs 98,76,78,524/-, including principal (Rs 68,21,00,000/-) and interest (Rs 30,55,78,524/-), with the default date being 28.02.2016. Indison Agro Foods Limited is a public limited company. The bank had extended credit facilities to the company under a master restructuring loan agreement. The account was declared NPA on 28.02.2016, followed by a recall notice on 07.05.2016. The corporate debtor argued the petition was time-barred, citing the SARFAESI Act notice date. They also offered a one-time settlement, which

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is within …

**Ratio:** The limitation period for filing an application under Section 7 of the IBC is determined

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**Reasoning:** The court reasoned that even if the account was declared NPA on 28.02.2016, the present

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**Interpretation:** The interpretation of the limitation period involves determining the relevant

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**Application:** In this case, the court applied the ratio by considering the date of the recall

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Indian…
- **Respondents:** Indison Agro…

## Timeline

- **2014-12-23 — Master Restructuring…**: Corporate debtor entered into a master restructuring loan agreement with Allahabad Bank,…
- **2016-02-28 — Account Decla…**: The corporate debtor's account was…

## 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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