# In the matter of Ashok Balasaheb Gajbar vs. Megha Rajeev Kore & Ors. Company Appeal (AT) (Ins) No. 1042 of 2021

> NCLAT judgment dated 2022-12-01. Citation: TCN-2022-NCLAT-00059. This appeal was filed by Ashok Balasaheb Gajbar, an erstwhile Director of Shaila Clubs &…

- **Court:** NCLAT
- **Order date:** 1 Dec 2022
- **Citation:** TCN-2022-NCLAT-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashok-balasaheb-gajbar-vs-megha-rajeev-kore-ors-company-appeal-02bf555d

## Summary

### Background

This appeal was filed by Ashok Balasaheb Gajbar, an erstwhile Director of Shaila Clubs & Resorts Private Limited, against an order dated 29.10.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-II). The Adjudicating Authority had admitted an application filed by Respondents No. 1 to 3 (Financial Creditors) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The respondents claimed that the Corporate Debtor had borrowed Rs. 3,59,00,000/- from late Rajeev Ramling Kore, whose legal heirs are the respondents. The corporate debtor contested the application, arguing that there was no debt or default, and that the amount was to be

…

## Facts

Rajeev Ramling Kore was a founding member, promoter, and Director of Shaila Clubs & Resorts Private Limited (Respondent No. 4). Rajeev Ramling Kore passed away on 08.07.2013. Respondents No. 1 to 3, who are the legal heirs of Rajeev Ramling Kore, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, alleging that Respondent No. 4 had borrowed Rs. 3,59,00,000/- from late Rajeev Ramling Kore. Respondents No. 1 to 3 sent a letter dated 03.10.2017 to Respondent No. 4 asking it to repay the sum of Rs. 3,59,00,000/- together with interest @ 18% p.a. The date of default was assigned as 14.10.2017. The Corporate Debtor contested the application, stating that the principal amount was to be repaid from the sale proceeds of the principal assets

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 7 of the …

**Ratio:** The Adjudicating Authority must apply its mind to the facts and circumstances of the case

…

**Reasoning:** The NCLAT found that the Adjudicating Authority had not discussed the contentions of the

…

**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to determine whether a

…

**Application:** The NCLAT found that the Adjudicating Authority had not properly considered the

…

## Parties

- **Judges:** Rakesh Kuma…; KanthiNar…
- **Appellants:** Ashok Balasaheb…
- **Respondents:** Shaila Clubs And…; MEGHNA RAJE…
- **Advocates:** Ruby Singh…; Lakshya K…; +7 more

## Timeline

- **2013-07-08 — Death of Rajeev Ramling…**: Rajeev Ramling Kore, founding member, promoter, and Director of Shaila Clubs & Resorts…
- **2017-10-03 — Demand N…**: Respondents No. 1 to 3 sent a letter to Respondent No. 4 asking it to repay Rs.…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ashok-balasaheb-gajbar-vs-megha-rajeev-kore-ors-company-appeal-02bf555d