# In the matter of IL & FS Finance Services Limited vs. Serveall Constructions Private Limited & Ors.

> HC judgment dated 2026-04-06. Citation: TCN-2026-HC-00008. IL & FS Financial Services Limited filed a commercial summary suit to recover a sum of Rs.…

- **Court:** HC
- **Order date:** 6 Apr 2026
- **Citation:** TCN-2026-HC-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-mumbai/il-fs-finance-services-limited-vs-serveall-constructions-private-limited-ors-830ae29e

## Summary

### Background

IL & FS Financial Services Limited filed a commercial summary suit to recover a sum of Rs. 203,66,31,506/- arising out of term loan facilities availed by Serveall Constructions Private Limited (defendant no. 1) and guaranteed by defendants nos. 2 to 4.

## Facts

IL & FS Financial Services Limited filed a summary suit to recover Rs. 203,66,31,506/-.

Serveall Constructions Private Limited (defendant no. 1) availed term loan facilities.

Housing Development and Infrastructure Limited (defendant no. 2) is the corporate guarantor.

Mr. Rakesh Wadhawan (defendant no. 3) and Mr. Sarang Wadhwan (defendant no. 4) are the personal guarantors.

A moratorium under Section 14 of the IB Code is in effect against defendant no. 2.

Applications under Section 95 of the IB Code were filed against defendants nos. 3 and 4, resulting in an interim moratorium under Section 96 of the IB Code.

…

## Issues and analysis

### Issue 1: Whether the moratorium under Section 14 of the IB Code applies to personal guarantors of a …

**Ratio:** The Apex Court in SBI Vs. V. Ramakrishnan held that the moratorium under Section 14 does

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**Reasoning:** The object of the Code is not to allow guarantors to escape from an independent and

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**Interpretation:** Section 14 moratorium is meant to protect the corporate debtor, not its

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**Application:** The moratorium against defendant no. 2 as a corporate guarantor does not extend

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## Parties

- **Judges:** Gauri G…
- **Appellants:** IL & FS Financial…
- **Respondents:** Housing Developmen…; Serveall Construct…; +2 more
- **Other parties:** Bank of…; UNITY SMALL…; +11 more
- **Advocates:** Rohan S…; Aman S…; +2 more

## Timeline

- **2019-08-20 — Order by…**: Order passed by the National Company Law Tribunal (“NCLT”) against defendant no.2 under…
- **2020-07-13 — Order by…**: Order passed by the NCLAT confirming the…

## 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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