# In the matter of MICA Industries Limited (IB)-464(ND)-2019

> NCLT judgment dated 2023-01-11. Citation: TCN-2023-NCLT-05105. Ashika Credit Capital Limited, the financial creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 11 Jan 2023
- **Citation:** TCN-2023-NCLT-05105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mica-industries-limited-ib-464nd-2019-bcbefde7

## Summary

### Background

Ashika Credit Capital Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Mica Industries Limited, the corporate debtor. The corporate debtor had requested a loan of Rs. 3 Crore from the financial creditor, which was formalized through an Inter Corporate Deposit (ICD) agreement dated 03.04.2017. The loan was for a period from 03.04.2017 to 02.04.2019 with an interest rate of 14% per annum. The principal amount was to be repaid in four equal quarterly installments. The corporate debtor provided 12 post-dated cheques drawn on Canara Bank towards the refund of the principal amount and accrued interest. The applicant claimed that the

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## Facts

Ashika Credit Capital Limited (Financial Creditor) and Mica Industries Limited (Corporate Debtor) entered into an Inter Corporate Deposit (ICD) agreement on 03.04.2017, where the Financial Creditor agreed to provide a loan of Rs. 3 Crore to the Corporate Debtor for a period of 730 days, from 03.04.2017 to 02.04.2019, with an interest rate of 14% per annum payable quarterly. The Corporate Debtor was to repay the principal amount in four equal quarterly installments of Rs. 75,00,000 each. To secure the loan repayment, the Corporate Debtor issued 12 post-dated cheques to the Financial Creditor. The Financial Creditor claimed that the Corporate Debtor defaulted on the repayment, leading to the dishonoring of cheques. Cheques No. 492912 dated 01.04.2018 and No. 492913 dated

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable despite the earlier withdrawal …

**Ratio:** The principle of res judicata does not apply when a petition is withdrawn with liberty to

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**Reasoning:** The court noted that the earlier petition was withdrawn with express liberty to restore

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**Interpretation:** The court interpreted the earlier order granting liberty to restore the

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**Application:** The court applied the ratio to the facts by holding that since the restoration

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Ashika Credit…
- **Respondents:** Mica Industries…

## Timeline

- **2017-04-03 — ICD Agre…**: Inter Corporate Deposit (ICD) agreement between Ashika Credit Capital Limited and Mica…
- **2019-08-06 — Petition Di…**: Original petition dismissed as withdrawn by the Applicant with liberty to seek…

## 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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