# In the matter of Pankaj Khandelwal & Ors. vs. A. Gangwal Real Estate LLP & Ors.

> NCLAT judgment dated 2023-12-07. Citation: TCN-2023-NCLAT-00044. The case involves two appeals, Company Appeal (AT) (Insolvency) No. 879 of 2021 and Company…

- **Court:** NCLAT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLAT-00044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pankaj-khandelwal-ors-vs-a-gangwal-real-estate-llp-ors-e938e85d

## Summary

### Background

The case involves two appeals, Company Appeal (AT) (Insolvency) No. 879 of 2021 and Company Appeal (AT) (Insolvency) No. 270 of 2022, filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016, against a common Impugned Order dated 13.10.2021 passed by the National Company Law Tribunal, Jaipur Bench. The Adjudicating Authority admitted an application filed by Respondent No. 2 in Company Appeal (AT) (Insolvency) No. 879 of 2021 and Respondent No. 1 in Company Appeal (AT) (Insolvency) No. 270 of 2022, Shankar Khandelwal, as a Financial Creditor under Section 7 of the Code. Pankaj Khandelwal is the Appellant in Company Appeal (AT) (Ins.) No. 879 of 2021, and Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) is the Appellant in

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## Facts

1. Two appeals were filed against the Impugned Order dated 13.10.2021 passed by the NCLT, Jaipur Bench, admitting an application under Section 7 of the IBC.
2. CIRP was initiated against A. Gangwal Real Estate L.L.P, the Corporate Debtor.
3. The Corporate Debtor, a Limited Liability Partnership, was incorporated on August 5, 2014.
4. The Corporate Debtor was initially formed with Ajay Gangwal and his wife Rakhi Gangwal as designated partners.
5. Shankar Lal Khandelwal and his wife Guman Khandelwal were later admitted as designated partners.
6. The Appellant alleged that during Shankar Khandelwal's tenure as a Partner, the Corporate Debtor obtained a Loan from RIICO.
7. Shankar Khandelwal was arrested in the Syndicate Bank Scam.
8. The LLP Agreement dated 31.12.2015

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority must satisfy itself that there is a financial debt and a

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**Reasoning:** The Appellate Tribunal found that the Balance Sheet prepared clearly acknowledged debts

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**Interpretation:** The interpretation of Section 7 of the IBC requires the Adjudicating Authority

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**Application:** The Appellate Tribunal applied the ratio to the facts by examining the Balance

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## Parties

- **Judges:** Anant Bijay…; Naresh Sa…
- **Appellants:** Pankaj Khan…
- **Respondents:** A. Gangwal Real…

## Timeline

- **2014-08-05 — Incorporation of…**: A. Gangwal Real Estate…
- **2014-09-25 — Admission of…**: Shankar Lal Khandelwal and Smt. Guman…

## 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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