# Axis Bank Limited vs. Maa Chinnamasta Food Processors Private Limited

> NCLT judgment dated 2026-09-15. Citation: TCN-2026-NCLT-01014. Axis Bank Limited, as Financial Creditor, filed a Section 7 application under the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 15 Sept 2026
- **Citation:** TCN-2026-NCLT-01014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/axis-bank-limited-vs-maa-chinnamasta-food-processors-private-limited-mnwrx

## Summary

### Background

Axis Bank Limited, as Financial Creditor, filed a Section 7 application under the IBC, 2016, against Maa Chinnamasta Food Processors Private Limited (Corporate Debtor) for initiating CIRP due to default in repayment of credit facilities totaling INR 22,03,24,509.99/-. The Corporate Debtor contested the application on grounds of non-disbursement of a term loan, non-consideration of an MSME restructuring proposal, limitation, and lack of proper authorization for the Financial Creditor's application.

## Facts

Axis Bank Limited (Financial Creditor) filed a Section 7 IBC petition against Maa Chinnamasta Food Processors Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP).

The Financial Creditor sanctioned various credit facilities, including Cash Credit I & II, Term Loan I & II, and Emergency Credit Line Guarantee Scheme-I, totaling INR 20,89,00,000/- to the Corporate Debtor.

The Corporate Debtor accepted the terms and conditions of the sanction letter dated 11.02.2021 via a Board Resolution on 20.02.2021.

Working Capital Loan and Term Loan agreements were executed on 24.02.2021 between the Corporate Debtor and the Financial Creditor.

…

## Issues and analysis

### Issue 1: Whether the non-disbursement of Term Loan-II of Rs. 4.19 crore affects the debt and default claimed …

**Ratio:** The non-disbursement of a conditional and project-linked facility, where the Corporate

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**Reasoning:** The sanction and renewal letters stipulated conditions (security, promoter's margin,

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**Interpretation:** A financial facility subject to conditions precedent is not an unconditional

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**Application:** The NCLT rejected the Corporate Debtor's objection regarding non-disbursement

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** Axis Bank L…
- **Respondents:** Maa Chinnamasta…
- **Other parties:** Committee of…; RAHUL K…; +2 more
- **Advocates:** Shaunak…; Avishek…; +3 more

## Timeline

- **2017-07-25 — Board Meeting for…**: Axis Bank Limited's Board of Directors held a meeting (continued on 26.07.2017) approving…
- **2017-08-23 — Circular Resolution for…**: The Committee of Whole-Time Directors of Axis Bank Limited passed a Circular Resolution…

## 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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