# In the matter of Frost International Ltd.

> NCLT judgment dated 2025-08-13. Citation: TCN-2025-NCLT-01250. Bank of India filed IA 2921/2025 under Section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Aug 2025
- **Citation:** TCN-2025-NCLT-01250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/frost-international-ltd-144bfb03

## Summary

### Background

Bank of India filed IA 2921/2025 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, in the Corporate Insolvency Resolution Process (CIRP) of Frost International Limited, seeking a stay on the CIRP and the approval of any resolution plan, as well as to quash the 41st CoC meeting's decision regarding distribution of payments to secured creditors.

## Facts

Bank of India, a financial creditor, filed an application (IA 2921/2025) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, in the CIRP of Frost International Limited.

Bank of India challenged the distribution pattern adopted by the Resolution Professional, arguing that it ignored the bank's exclusive charge over assets held as margin against a letter of credit facility.

The applicant had filed a claim with the Resolution Professional for Rs. 10,128,232,762/-, but the Resolution Professional admitted a claim of Rs. 10,124,915,522/- and put Rs. 33,17,240/- under verification.

The applicant claimed exclusive charge over a property in Mumbai, held as 5% margin for FLC/LOC/BG amounting to Rs. 700 crores, in addition to a 10% margin held as FDRs.

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## Issues and analysis

### Issue 1: Whether the distribution pattern adopted by the Resolution Professional, which ignores the …

**Ratio:** The NCLT relied on precedents, including 'Essar Steel (India) Ltd. (CoC) v. Satish Kumar

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**Reasoning:** The NCLT considered the applicant's argument that its exclusive security interest was

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**Interpretation:** The NCLT interpreted the relevant provisions of the Insolvency and Bankruptcy

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**Application:** The NCLT applied the legal principles to the specific facts of the case,

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## Parties

- **Judges:** Prabhat…; Sushil Mahadeorao…
- **Appellants:** Bank of…
- **Respondents:** FROST INTERNATIONA…; Amit Chandrakant…
- **Advocates:** Rohit G…; Indrajeet D…; +6 more

## Timeline

- **2023-02-09 — Order Da…**: Order allowing the Company Petition under Section 7 of Insolvency and Bankruptcy Code,…
- **2023-02-23 — Claim Fi…**: Applicant filed its claim with the Resolution Professional for a sum of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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