# In the matter of Hiren Meghji Bharani vs. Shankheshwar Properties Pvt. Ltd. & Ors. Company Appeal (AT) (Insolvency) No. 446 of 2023]

> NCLAT judgment dated 2023-12-22. Citation: TCN-2023-NCLAT-00004. This appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 by the…

- **Court:** NCLAT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLAT-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/hiren-meghji-bharani-vs-shankheshwar-properties-pvt-ltd-ors-company-appeal-95ab06f5

## Summary

### Background

This appeal was filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 by the Appellant, Hiren Meghji Bharani, who is the Suspended Director of the Corporate Debtor, against the impugned order dated 03.02.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in Company Petition (IB) No. 1140/MB-IV/2020. The Adjudicating Authority ordered Corporate Insolvency Resolution Process (CIRP) under Section 7 against the Corporate Debtor, Shankheshwar Properties Pvt. Ltd., and appointed Mr. S. Gopala Krishnan as the Insolvency Resolution Professional. The Financial Creditor, Rupa Infotech & Infrastructure Pvt. Ltd., filed a Section 7 petition under IBC seeking CIRP against Shankeshwar Properties Pvt. Ltd., claiming that it had

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## Facts

Hiren Meghji Bharani, the Suspended Director of the Corporate Debtor, Shankheshwar Properties Pvt. Ltd., filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) which initiated Corporate Insolvency Resolution Process (CIRP) against Shankheshwar Properties Pvt. Ltd. based on a petition filed by Rupa Infotech & Infrastructure Pvt. Ltd., the Financial Creditor. The Financial Creditor claimed to have provided an inter-corporate loan of Rs. 7 crores to the Corporate Debtor, documented in a 'confirmation and undertaking' with an interest rate of 12% per annum. The Corporate Debtor made interest payments until 31.03.2016, with the last payment of Rs. 1 crore made on 04.07.2017. The Financial Creditor filed a Section 7

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has incorrectly relied upon an unstamped document with the title …

**Ratio:** Agreements which are not stamped or are inadequately stamped are inadmissible in evidence

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**Reasoning:** The NCLAT relied on the Apex Court's judgment in Curative Petition (C) No. 44 of 2023,

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**Interpretation:** The interpretation of Section 35 of the Stamp Act, as clarified by the Apex

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**Application:** In this case, the NCLAT found that the Adjudicating Authority had not solely

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Hiren Meghji…
- **Respondents:** Shankheshwar…

## Timeline

- **2015-12-23 — Date of D…**: Date of Default as per…
- **2016-03-31 — Last Interest…**: Corporate Debtor made…

## 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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