# In the matter of Carissa Investments LLC vs. Indu Techzone Pvt. Ltd. & Ors.

> NCLAT judgment dated 2023-08-08. Citation: TCN-2023-NCLAT-00301. This case involves a challenge to an order passed by the Adjudicating Authority in CP(IB)No.…

- **Court:** NCLAT
- **Order date:** 8 Aug 2023
- **Citation:** TCN-2023-NCLAT-00301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/carissa-investments-llc-vs-indu-techzone-pvt-ltd-ors-1b2db2d7

## Summary

### Background

This case involves a challenge to an order passed by the Adjudicating Authority in CP(IB)No. 207/7/HDB/2021, filed by M/s. Prudent ARC Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had admitted Section 7 Application. The Appellant challenges the admission of the application, arguing that the debt is time-barred and that Section 10-A of the IBC prohibits the initiation of CIRP for defaults occurring during a specific period.

## Facts

Carissa Investments LLC, the Appellant, is challenging the admission of a Section 7 application filed by Prudent ARC Limited, the Respondent, against Indu Techzone Pvt. Ltd., the Corporate Debtor. The Corporate Debtor had availed a term loan of Rs. 60 Crores from IDFC Ltd., which was later assigned to EARC and subsequently to Prudent ARC Limited. The loan account was declared as NPA on 13.10.2013. EARC filed OA No.721 of 2015 before the Debts Recovery Tribunal for recovery of Rs.49,12,33,998/- plus interest. A Settlement Agreement was executed on 12.03.2018, wherein the Corporate Debtor was to pay Rs.15,00,12,830/- in three tranches. The Corporate Debtor defaulted on the third tranche. EARC assigned its right to Prudent ARC Ltd. on 04.09.2020 and 23.12.2020. The

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## Issues and analysis

### Issue 1: Whether the date of default, admittedly being 31.03.2020, is in direct contravention to Section …

**Ratio:** Section 10A of the IBC suspends the initiation of CIRP for defaults arising on or after

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**Reasoning:** The court considers the object of the legislation, which was to suspend the operation of

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**Interpretation:** Section 10A is interpreted to mean that no application for the initiation of

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**Application:** In this case, the alleged default occurred on 31.03.2020, which falls within

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## Parties

- **Judges:** Shreesha…; Shreesha…
- **Appellants:** Carissa Investment…
- **Respondents:** Indu Techzone…

## Timeline

- **2007-10-02 — Share Subscription…**: Appellant, shareholder, and Corporate Debtor executed a share subscription, share…
- **2008-09-08 — Rupee Loan Ag…**: A Rupee Loan Agreement was executed between IDFC and the Corporate Debtor for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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