# In the matter of Siddhi Agrofoods Pvt.  Ltd.

> NCLT judgment dated 2024-04-03. Citation: TCN-2024-NCLT-01853. IndusInd Bank Ltd, the Financial Creditor (FC), filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-NCLT-01853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siddhi-agrofoods-pvt-ltd-145bf44c

## Summary

### Background

IndusInd Bank Ltd, the Financial Creditor (FC), filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Siddhi Agro Foods Pvt. Ltd, the Corporate Debtor (CD). The petition pertains to a loan facility availed by the CD amounting to Rs. 62,66,08,088, which includes a principal amount of Rs. 31,03,20,563.49 and interest of Rs. 31,62,87,524.51 calculated up to 28.02.2023. The CD had been granted a cash credit/overdraft facility and a term loan by the FC, secured by charges registered with the Registrar of Companies, Chhattisgarh. The CD's account was classified as a Non-Performing Asset (NPA) on 11.07.2017, leading to the issuance of a demand notice under Section 13(2)

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## Facts

IndusInd Bank Ltd, the Financial Creditor (FC), sought to initiate Corporate Insolvency Resolution Process (CIRP) against Siddhi Agro Foods Pvt. Ltd, the Corporate Debtor (CD), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The claim was based on a loan facility of Rs. 62,66,08,088 availed by the CD, including Rs. 31,03,20,563.49 as principal and Rs. 31,62,87,524.51 as interest calculated up to 28.02.2023. The FC had sanctioned a cash credit/overdraft facility and a term loan to the CD, secured by registered charges. The CD's account was classified as a Non-Performing Asset (NPA) on 11.07.2017, leading to a demand notice under Section 13(2) of the SARFAESI Act, 2002. The CD challenged the petition, arguing that Mr. Rohit Swaroop, who filed the

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## Issues and analysis

### Issue 1: Whether the Petition filed by Power Agent Mr. Rohit Swaroop in pursuance of power of attorney dated …

**Ratio:** The Hon'ble Supreme Court in Rajendra Narottamdas Seth & Anr. V. Chandra Prakash Jain

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**Reasoning:** Mr. Sushil Kumar Jain, Head-Financial Restructuring and Reconstruction Group of the

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**Interpretation:** The power of attorney dated 24.06.2020 in favour of Mr. Rohit Swaroop, was

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**Application:** Mr. Sushil Kumar Jain is authorized by clause IV of POA dated 27.03.2012 to

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** IndusInd Ba…
- **Respondents:** Siddhi Agro Foods…

## Timeline

- **2015-06-24 — Agreement for cash…**: Agreement for cash credit/overdraft…
- **2015-06-08 — Sanction letter issued…**: Sanction letter issued…

## 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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