# In the matter of Mobile Constructions Private Limited vs. Apple Land Development Private Limited

> NCLAT judgment dated 2024-12-11. Citation: TCN-2024-NCLAT-00034. This is a Company Appeal (AT) (Insolvency) No. 756 of 2024 arising out of an order dated…

- **Court:** NCLAT
- **Order date:** 11 Dec 2024
- **Citation:** TCN-2024-NCLAT-00034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mobile-constructions-private-limited-vs-apple-land-development-private-limited-0f8e861b

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 756 of 2024 arising out of an order dated February 21, 2024, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-II) in CP (IB) /1051/MB/2023. The appeal was filed against the dismissal of a Section 7 petition under the Insolvency and Bankruptcy Code, 2016. The Appellant/Financial Creditor had extended financial assistance in the nature of a loan to the Corporate Debtor/Respondent and disbursed a total amount of Rs 1,57,50,000/-. The Respondent started committing default from the first installment of half-yearly interest, which became due and payable on 10.10.2019. The Adjudicating Authority dismissed the Section 7 Petition on the ground that the date of default was 04.08.2020 and the

…

## Facts

Mobile Constructions Private Limited (Appellant/Financial Creditor) extended a loan of Rs 1,57,50,000/- to Apple Land Development Private Limited (Respondent/Corporate Debtor). The loan was disbursed in five tranches between April 10, 2019, and April 24, 2019. The interest was to be paid on a half-yearly basis at 12% per annum. The first installment of interest became due on October 10, 2019. The Respondent defaulted on the first installment of interest. The Appellant issued a demand notice on July 20, 2020, recalling the overdue payment. The Appellant issued another demand notice on May 25, 2023, recalling the entire principal amount with interest. The Appellant filed a Section 7 petition in August 2023. The Adjudicating Authority dismissed the Section 7 petition,

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority could have calculated a date of default, dehors the agreement …

**Ratio:** The determination of the date of default should be based on the facts of the case and the

…

**Reasoning:** The Adjudicating Authority erred in relying on the demand notice to determine the date of

…

**Interpretation:** The absence of a formal loan agreement does not prevent the determination of

…

**Application:** In this case, the first installment of interest became due on October 10, 2019,

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Mobile Constructio…
- **Respondents:** APPLE LAND…

## Timeline

- **2019-04-10 — First Tranche…**: First tranche of loan…
- **2019-04-24 — Last Tranche Disbursemen…**: Last tranche of loan…

## 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)

---

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/mobile-constructions-private-limited-vs-apple-land-development-private-limited-0f8e861b