# In the matter of Maitreya Doshi Vs. Anand Rathi Global Finance Ltd. & Anr.

> NCLAT judgment dated 2021-08-25. Citation: TCN-2021-NCLAT-00116. The appeal arises from an order dated 19th February 2021, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 25 Aug 2021
- **Citation:** TCN-2021-NCLAT-00116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/maitreya-doshi-vs-anand-rathi-global-finance-ltd-anr-949506f9

## Summary

### Background

The appeal arises from an order dated 19th February 2021, passed by the Adjudicating Authority (National Company Law Tribunal), Court 5, Mumbai Bench, in C.P. (IB) No. 1220/MB/2020. Anand Rathi Global Finance Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Doshi Holdings Pvt. Ltd. (the Corporate Debtor). The Adjudicating Authority admitted the application and initiated CIRP, leading to the present appeal by Maitreya Doshi, the suspended director of the Corporate Debtor.

## Facts

Anand Rathi Global Finance Ltd. (Respondent No. 1) disbursed a loan of Rs. 6 Crore to M/s Premier Ltd. under three separate Loan cum Pledge Agreements dated 29.06.2015, 04.05.2016, and 05.10.2016. Doshi Holdings Pvt. Ltd. (the Corporate Debtor) pledged shares held by it in M/s Premier Ltd. in favor of Respondent No. 1. The Appellant, Maitreya Doshi, signed the Loan cum Pledge Agreements on behalf of both Premier Ltd. and Doshi Holdings as an authorized signatory. The Sanction Letter dated 27.06.2015, issued by Respondent No. 1, sanctioned financial facilities to both M/s Premier Ltd. and M/s Doshi Holdings. The Loan cum Pledge Agreement identified Premier Ltd. as Borrower 1 and Doshi Holdings as Borrower 2/Pledgor, collectively referred to as 'Borrower(s)'. The

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## Issues and analysis

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

**Ratio:** A co-borrower is as much a Borrower like the other entity and is fully liable to repay

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**Reasoning:** The court reasoned that the loan documents, including the Sanction Letter and Loan cum

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**Interpretation:** The court interpreted the loan documents to establish that Doshi Holdings was

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**Application:** The court applied the ratio to the facts of the case, noting that Doshi

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## Parties

- **Judges:** A.I.S. C…; V. P. S…
- **Appellants:** Maitreya…
- **Respondents:** Doshi Holdings…; Anand Rathi…

## Timeline

- **2021-02-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Court 5, Mumbai Bench, passed…
- **2015-06-29 — Loan cum Pledge…**: Loan cum Pledge Agreement dated 29.06.2015 was executed between Anand Rathi Global…

## 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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