# In the matter of Alliance Broadband Services Pvt. Ltd. Vs. Manthan Broadband Services Ltd., IA No. GA/3/2022
In CS/54/2019

> HC judgment dated 2022-12-19. Citation: TCN-2022-HC-00006. Alliance Broadband Services Private Limited filed a suit against Manthan Broadband Services Private…

- **Court:** HC
- **Order date:** 19 Dec 2022
- **Citation:** TCN-2022-HC-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/alliance-broadband-services-pvt-ltd-vs-manthan-broadband-services-ltd-ia-no-ga32-7c90e99d

## Summary

### Background

Alliance Broadband Services Private Limited filed a suit against Manthan Broadband Services Private Limited (in liquidation) seeking a decree for Rs. 11,06,15,68/- and a declaration regarding 77,500 equity shares. The petitioner had disbursed Rs. 6.30 crores to the respondent as an accommodation loan between April and July 2017, secured by a pledge of original share certificates. The respondent also availed another loan of Rs. 10.20 crores. The petitioner filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the NCLT. A liquidator was appointed after the initiation of liquidation proceedings against the respondent. The petitioner filed a claim of Rs. 14,47,32,521/- before the liquidator. The liquidator denied the

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## Facts

Alliance Broadband Services Private Limited (the petitioner) filed a suit against Manthan Broadband Services Private Limited (the respondent, now in liquidation) seeking a decree for Rs. 11,06,15,68/- and a declaration regarding 77,500 equity shares. The petitioner had disbursed Rs. 6.30 crores to the respondent as an accommodation loan between April and July 2017, with an interest rate of 9.75% per annum, secured by a pledge of 77,500 equity shares. The respondent repaid the principal amount on 31.03.2018 and again in April 2018. The respondent availed another loan of Rs. 10.20 crores, agreeing to repay it within 3 months at 9.75% interest, with the pledged shares continuing as security and further security in the form of a mortgage of immovable properties. The

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## Issues and analysis

### Issue 1: Whether the petitioner is entitled to an ad interim injunction restraining the respondent company …

**Ratio:** Section 60(5) of the IBC, 2016, allows the petitioner to approach the NCLT instead of

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**Reasoning:** The court reasoned that the matter in issue can be more appropriately and effectively

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**Interpretation:** The court interpreted the relevant provisions of the IBC and the Companies Act

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** Krishna…
- **Appellants:** Alliance Broadband…
- **Respondents:** Manthan Broadband…

## Timeline

- **2017-04-01 — Loan Disbur…**: Petitioner disbursed Rs. 6.30 crores to the respondent between April and July 2017 as an…
- **2018-12-01 — Application under…**: The petitioner filed an application under Section 7 of the Insolvency and Bankruptcy…

## 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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