# In the matter of Mango Meadows Agricultural Pleasure Land (Pvt. Ltd.) Vs. Union of India.,WP(C)-7444 of 2022

> HC judgment dated 2022-08-10. Citation: TCN-2022-HC-00027. The petitioner company, Mango Meadows Agricultural Pleasure Land (Pvt. Ltd.), is conducting an…

- **Court:** HC
- **Order date:** 10 Aug 2022
- **Citation:** TCN-2022-HC-00027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/mango-meadows-agricultural-pleasure-land-pvt-ltd-vs-union-of-indiawp-616ee1df

## Summary

### Background

The petitioner company, Mango Meadows Agricultural Pleasure Land (Pvt. Ltd.), is conducting an Agricultural Theme Park in Ayamkudi, Kottayam District. To finance its business, the company availed loans from the 9th respondent, Kosamattom Finance Ltd., amounting to Rs.4 Crores in 2015, Rs.8 Crores in 2016, and Rs.2 Crores in 2017. The 9th respondent adjusted Rs.4 Crores towards interest from the sanctioned amount. Initially, the loans were repaid regularly, but the Covid-19 pandemic and subsequent lockdowns caused significant business setbacks, making it impossible for the company to remit installments on time. Without considering the company's request for time to improve its business, the 9th respondent initiated SARFAESI proceedings and took symbolic possession of the

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## Facts

Mango Meadows Agricultural Pleasure Land (Pvt. Ltd.), the petitioner, operates an agricultural theme park in Kottayam District. The company obtained loans from Kosamattom Finance Ltd., the 9th respondent, totaling Rs.4 Crores in 2015, Rs.8 Crores in 2016, and Rs.2 Crores in 2017. Initially, the loans were repaid regularly. However, the Covid-19 pandemic and subsequent lockdowns caused significant business setbacks, making it impossible for the company to remit installments on time. Kosamattom Finance Ltd. initiated SARFAESI proceedings and took symbolic possession of the immovable property given as security for the loans. The petitioner challenged these proceedings before the Debts Recovery Tribunal (DRT), which granted a stay subject to remittance of a portion of the

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## Issues and analysis

### Issue 1: Whether Section 7 of the Insolvency and …

**Ratio:** The legal principle is that there is a presumption of constitutional validity for any

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**Reasoning:** The court relies on precedents, including decisions of the Apex Court in Swiss Ribbons

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**Interpretation:** The interpretation of Section 7 involves considering the guidelines indicated

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**Application:** The court applies the principle that there is a presumption of constitutional

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## Parties

- **Judges:** V.G.A…
- **Respondents:** MANGO MEADOWS…; Union of…

## Timeline

- **2015-01-01 — Loan Ava…**: The company availed a loan of Rs.4…
- **2016-01-01 — Loan Ava…**: The company availed a loan of Rs.8…

## 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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