# In the matter of Unique Agro Processors India Ltd.

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01986. Shri Salasar Agro Processors, a non-banking financial company, filed a petition under Section 7…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-01986
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/unique-agro-processors-india-ltd-ea9d0896

## Summary

### Background

Shri Salasar Agro Processors, a non-banking financial company, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Unique Agro Processors due to a default in repayment of a debt amounting to INR 3,51,77,439.00. The debt was due as of December 31, 2023, with the date of default being January 10, 2024. The Financial Creditor claims that the Corporate Debtor has acknowledged the debt over several financial years. The Corporate Debtor acknowledged the ramifications of the financial crisis, which have left it unable to fulfill its outstanding debt obligations.

## Facts

Shri Salasar Agro Processors, a non-banking financial company, filed a company petition to initiate Corporate Insolvency Resolution Process (CIRP) against Unique Agro Processors India Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditor claimed a default in repayment of outstanding debt amounting to Rs. 3,51,77,439.00, which was due on 31.12.2023, with the date of default being 10.01.2024. The financial creditor was incorporated on 07.09.2013. The Corporate Debtor was declared a sick industrial company under Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Corporate Debtor acknowledged the debt from Financial Year 2013-14 to 2022-23. The Corporate Debtor offered a settlement of Rs. 1,50,00,000 via

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of the outstanding debt to the …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court found that the Corporate Debtor failed to repay the outstanding amount of INR

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**Interpretation:** A default occurs when a corporate debtor fails to pay a debt when it has become

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**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** V.G. B…; SH. PRABHAT…
- **Appellants:** Salasar Agro…
- **Respondents:** Unique Agro…

## Timeline

- **2013-09-07 — Incorporation of…**: The Financial Creditor, Shri Salasar…
- **2000-03-16 — Corporate Debtor…**: Unique Agro Processors was declared a sick industrial company under Section 3(1)(o) of…

## 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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