# In the matter of N.K. Kurian vs. Kosamattom Finance Ltd. Comp. Appeal (AT) CH (INS) No.88 of 2023

> NCLAT judgment dated 2023-04-13. Citation: TCN-2023-NCLAT-00622. The case involves an appeal against an order dated 25.01.2023 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 13 Apr 2023
- **Citation:** TCN-2023-NCLAT-00622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nk-kurian-vs-kosamattom-finance-ltd-comp-appeal-5a624e63

## Summary

### Background

The case involves an appeal against an order dated 25.01.2023 passed by the National Company Law Tribunal (NCLT), Kochi Bench, which admitted a Section 7 application under the Insolvency and Bankruptcy Code (IBC), 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Mango Meadows Agricultural Pleasure Land (P) Limited, the Corporate Debtor. The Appellant, the Suspended Managing Director of the Corporate Debtor, filed the appeal before the National Company Law Appellate Tribunal (NCLAT), Chennai, contending that the NCLT erroneously admitted the Section 7 application filed by Kosamattom Finance Ltd., the Financial Creditor.

## Facts

M/s Mango Meadows Agricultural Pleasure Land (P) Limited ('Corporate Debtor') faced Corporate Insolvency Resolution Process (CIRP) initiation based on an application by Kosamattom Finance Ltd. ('Financial Creditor'). The Corporate Debtor's suspended Managing Director appealed the Adjudicating Authority's decision to admit the Section 7 application. The Corporate Debtor claims that the Financial Creditor did not account for repayments made, and that the application was initiated fraudulently. The Financial Creditor claims a default of Rs. 23,58,34,018/-. The Corporate Debtor argues that successive disasters and the Covid-19 pandemic impacted its business. The Corporate Debtor also claims to have offered a takeover of the loan by the Kerala Financial Corporation, which

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) erred in admitting the Section 7 application filed by the …

**Ratio:** The Insolvency and Bankruptcy Code (IBC), 2016, allows for the initiation of CIRP upon

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**Reasoning:** The Adjudicating Authority considered the evidence presented by both parties, including

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**Interpretation:** Section 7 of the IBC provides a mechanism for Financial Creditors to initiate

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**Application:** The Adjudicating Authority applied the provisions of Section 7 of the IBC to

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## Parties

- **Judges:** M. Venu…
- **Appellants:** N.K. Ku…
- **Respondents:** M/s Mango meadows…; Kosamattom…

## Timeline

- **2023-01-25 — Impugned Ord…**: Date of the Impugned Order passed by the Adjudicating Authority (National Company Law…
- **2022-09-19 — Appellant's C…**: Order dated 19.9.2022 in Comp. Appeal AT CH (INS) No.1005 of 2022 between Reliance…

## 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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