HDFC Bank Ltd Vs Bhagwati Agro Industries Pvt. Ltd. (NCLT Indore)
Summary: HDFC Bank Limited (“Financial Creditor”) filed a petition before the National Company Law Tribunal (NCLT), Indore, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Bhagwati Agro Industries Pvt. Ltd. (“Corporate Debtor”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The petition alleges default in repayment of financial debts totaling ₹10,44,03,044.07 as on 31 December 2024.
The Financial Creditor stated that it had extended multiple financial facilities to the Corporate Debtor over several years to meet working capital requirements for procurement, processing, and packaging of edible oils including soya, palm, crude, degummed soya, groundnut, mustard, and other commodities. Sanction letters issued from 2016 to 2023 included cash credit, term loans, working capital term loans, Guaranteed Emergency Credit Line (GECL), and corporate card facilities. The aggregate sanctioned limit of the financial facilities amounted to ₹9,73,09,715, including two corporate cards with a limit of ₹10 lakhs each.
The Corporate Debtor’s account was classified as a Non-Performing Asset (NPA) on 28 July 2024 due to persistent default. The Financial Creditor issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 13 December 2024, demanding repayment of ₹10,44,03,044.07, which remained unpaid. Subsequently, HDFC Bank filed the petition under Section 7 of the IBC. The Financial Creditor also relied on a one-time settlement (OTS) proposal dated 25 April 2025 and a certificate from the Information Utility (NESL Form-D dated 8 November 2024) to establish acknowledgment of the debt.
