# In the matter of Monica Jajoo vs. PHL Fininvest Pvt. Ltd. & Ors.

> NCLAT judgment dated 2023-07-21. Citation: TCN-2023-NCLAT-00351. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLAT
- **Order date:** 21 Jul 2023
- **Citation:** TCN-2023-NCLAT-00351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/monica-jajoo-vs-phl-fininvest-pvt-ltd-ors-ac939996

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, challenging orders dated 29.08.2022 and 16.9.2022 passed by the Adjudicating Authority (NCLT, New Delhi). The appellant, Monica Jajoo, is a personal guarantor to a loan. PHL Fininvest Pvt. Ltd. (Respondent No. 1) initiated personal insolvency proceedings against the appellant after issuing a demand notice for Rs. 443,36,21,727/-. The NCLT initiated personal insolvency against the appellant and appointed Mr. Jayesh Natvarlal Sanghrajka as Resolution Professional. Subsequently, an application was filed for replacement of the Resolution Professional, and Mr. Jayant Prakash (Respondent No. 2) was appointed as the new Resolution Professional.

## Facts

A Facility Agreement was entered into between Piramal Finance Limited ("PFL") and Hema Engineering Industries Ltd (“HEIL”) on 20.7.2017. PFL and Piramal Capital Ltd. (“PCL”) were amalgamated with Piramal Housing Finance Limited (“PHFL”), later renamed Piramal Capital & Housing Finance Limited (“PCHFL”). On 22.3.2019, the loan was assigned to PHL Fininvest Private Limited (Respondent No. 1). Respondent No. 1 issued a demand notice to Monica Jajoo (Appellant), the personal guarantor, for Rs. 443,36,21,727/-. Respondent No. 1 filed an application under section 95(1) of the IBC seeking initiation of personal insolvency against the Appellant on 21.6.2021. The NCLT initiated personal insolvency against the Appellant on 29.8.2022 and appointed Mr. Jayesh

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## Issues and analysis

### Issue 1: Whether the Company Petition (IB) 381/ND/2021 was heard and the two Impugned Orders dated 29.8.2022 …

**Ratio:** Section 60(2) of the IBC stipulates that where a corporate insolvency resolution process

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**Reasoning:** The NCLAT observed that the liquidation proceedings of the corporate debtor HEIL were

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**Interpretation:** Section 60(2) aims to ensure that all proceedings related to the insolvency

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**Application:** Since the liquidation proceedings of HEIL were pending before Bench-III, the

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Monica…
- **Respondents:** Hema Engineering…; PHL Fininvest…

## Timeline

- **2017-07-20 — Facility Ag…**: Piramal Finance Limited ("PFL") entered into a Facility Agreement with Hema Engineering…
- **2019-03-22 — Assignment Ag…**: The loan on account of the Facility Agreement was assigned in favour of PHL Fininvest…

## 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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