# In the matter of Paranjape Agro Products (India) Pvt. Ltd. CP (IB) 3755-MB-2019

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02276. The case pertains to a Company Petition (CP) originally filed by Syndicate Bank, later changed…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02276
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/paranjape-agro-products-india-pvt-ltd-cp-ib-3755-mb-2019-3e933d0e

## Summary

### Background

The case pertains to a Company Petition (CP) originally filed by Syndicate Bank, later changed to Canara Bank, against Paranjape Agro Products Pvt. Ltd., the Corporate Debtor (CD), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) due to the CD's non-payment of outstanding dues. The Financial Creditor (FC), Canara Bank, claims a default of Rs 16,42,47,832 as of 03.01.2018, with the account classified as NPA on 03.04.2018. The CD opposed the admission of the petition, alleging it was an attempt to liquidate the company, which is in the cashew nut trading business. The CD admitted to defaulting on some payment obligations due to unforeseen circumstances but claimed to have

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## Facts

Syndicate Bank originally filed a Company Petition, which was later amended to reflect Canara Bank as the Financial Creditor (FC). The FC filed the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Paranjape Agro Products Pvt. Ltd., the Corporate Debtor (CD), due to non-payment of outstanding dues. Loan facilities were sanctioned on 12.06.2017, including a term loan of Rs 583 Lakhs, SOD of Rs 600 Lakhs, and PCL of Rs 200 Lakhs. The total claim amount in default is Rs 16,42,47,832, with the date of default being 03.01.2018, and the account classified as NPA on 03.04.2018. The FC holds mortgaged securities, including land and factory buildings, and hypothecated securities

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established the existence of a financial debt and a default on …

**Ratio:** Section 5(8) of the IBC defines 'financial debt', and Section 3(12) defines 'default'.

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**Reasoning:** The court considered the facts and submissions of the FC and concluded that the loan

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**Interpretation:** The court interpreted the provisions of Section 5(8) and Section 3(12) of the

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**Application:** The court applied the ratio to the facts of the case, noting that the FC had

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## Parties

- **Judges:** P.N. Des…; K.K. V…
- **Appellants:** Canara…
- **Respondents:** Paranjape Agro…

## Timeline

- **2017-06-12 — Loan Facilities…**: Loan facilities, including term loan, SOD, and PCL, were sanctioned to the Corporate…
- **2018-01-03 — Date of D…**: The date of default for…

## 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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