# In the matter of Guruprasad V Hishobkar vs. Shree Aashraya Souhard Credit Society Limited Company Appeal (AT) (CH) (Ins) No. 51-2021

> NCLAT judgment dated 2023-06-02. Citation: TCN-2023-NCLAT-00458. The appeal was filed by the Promoter/Shareholder of the Corporate Debtor under Section 61 of…

- **Court:** NCLAT
- **Order date:** 2 Jun 2023
- **Citation:** TCN-2023-NCLAT-00458
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/guruprasad-v-hishobkar-vs-shree-aashraya-souhard-credit-society-limited-company-08228f71

## Summary

### Background

The appeal was filed by the Promoter/Shareholder of the Corporate Debtor under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the Impugned Order dated 06/04/2021, passed by the National Company Law Tribunal, Bengaluru Bench, Bengaluru in C.P.(IB) No. 196/BB/2020. The Adjudicating Authority admitted the Section 7 Application preferred by the 1st Respondent / Financial Creditor / Shree Aashraya Souhard Credit Society Limited. The Financial Creditor is a Co-operative Society registered under the 'Karnataka Co-operative Societies Act, 1959' and subsequently got registered under 'Karnataka Souharda Sahakari Act, 1977' and changed its name to 'Shree Aashraya Souhard Credit Society Limited'. The Corporate Debtor is engaged in the business of Real Estate and

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## Facts

Mr. Guruprasad V Hishobkar, Promoter/Shareholder of Shree Ashraya Infra-Con Limited (Corporate Debtor), filed an appeal against the order dated 06/04/2021 passed by the National Company Law Tribunal, Bengaluru Bench, in C.P.(IB) No. 196/BB/2020. The Adjudicating Authority admitted the Section 7 Application filed by Shree Aashraya Souhard Credit Society Limited (Financial Creditor). The Financial Creditor is a Co-operative Society registered under the 'Karnataka Co-operative Societies Act, 1959' and subsequently got registered under 'Karnataka Souharda Sahakari Act, 1977'. The Corporate Debtor is engaged in the business of Real Estate and Construction. The Financial Creditor had provided Secured Cash Credit Facility to the tune of Rs. 14 Crores, prior to 1997 and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in admitting the Section 7 Application, filed by …

**Ratio:** Once the 'threshold on debt' is crossed, the Adjudicating Authority has to admit or

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**Reasoning:** The Special Officer had categorically stated that the reversal of interest waiver, which

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**Interpretation:** The Adjudicating Authority is required to ascertain the existence of default

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**Application:** The record establishes that there is a 'debt' and a 'default' and the

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## Parties

- **Judges:** M. Venu…; Shreesha…
- **Appellants:** Guruprasad V…
- **Respondents:** Shree Ashraya…; Shree Aashraya…
- **Advocates:** K.S. Ravich…; S Viveka…; +1 more

## Timeline

- **2021-04-06 — Impugned…**: Impugned Order passed by the National Company Law Tribunal, Bengaluru Bench, Bengaluru in…
- **2021-10-11 — Order from Deputy…**: RP received an Order dated 11/10/2021, whereby the Deputy Registrar of Co-operative…

## 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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