# In the matter of Piramal Capital & Housing Finance Ltd. & Ors. vs. Hydric Infrastructure Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-02-02. Citation: TCN-2024-NCLAT-00658. The case involves two appeals (CA (AT) (Ins) No. 851 of 2023 and CA (AT) (Ins) No. 852 of…

- **Court:** NCLAT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLAT-00658
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/piramal-capital-housing-finance-ltd-ors-vs-hydric-infrastructure-pvt-ltd-ors-17c97228

## Summary

### Background

The case involves two appeals (CA (AT) (Ins) No. 851 of 2023 and CA (AT) (Ins) No. 852 of 2023) filed by Piramal Capital & Housing Finance Ltd. against Hydric Infrastructure Pvt. Ltd. and Hydric Town Planners Pvt. Ltd., respectively. These appeals arise from applications filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against the respondents, who acted as corporate guarantors for a loan extended to Crystal Facilities Management Pvt. Ltd. (CFMPL). The Adjudicating Authority dismissed the applications, relying on a previous decision of the Tribunal which held that an application against the principal borrower is not maintainable against the corporate guarantor on the same set of debt.

…

## Facts

Piramal Capital & Housing Finance Ltd. (Appellant) filed applications under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Hydric Infrastructure Pvt. Ltd. and Hydric Town Planners Pvt. Ltd. (Respondents) as corporate guarantors. The applications were for initiating Corporate Insolvency Resolution Process (CIRP) due to an alleged default of Rs. 53,26,52,972/-. The Corporate Debtor (Hydric Infrastructure Pvt. Ltd.) executed a deed of guarantee on 29.03.2018 for repayment of a facility extended to Crystal Facilities Management Pvt. Ltd. (CFMPL). A loan agreement dated 29.03.2018 was entered into between CFMPL and Dewan Housing Finance Corporate Limited, with a loan of Rs. 35 Crores approved. Piramal Capital & Housing Finance Limited was merged into

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Code is maintainable, having been filed by the …

**Ratio:** The Supreme Court in Laxmi Pat Surana Vs. Union Bank of India held that a lender has the

…

**Reasoning:** The NCLAT reasoned that the Adjudicating Authority's decision was patently illegal

…

**Interpretation:** The Supreme Court's interpretation of the IBC and the Contract Act allows a

…

**Application:** In this case, the NCLAT applied the Supreme Court's ruling to the facts,

…

## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Piramal Capital…
- **Respondents:** Hydric Infrastruct…
- **Advocates:** Jayant…; Bihu Sh…; +5 more

## Timeline

- **2018-03-28 — Sanction…**: Sanction letter for loan of Rs. 35 Crores…
- **2018-03-29 — Deed of Gua…**: The Corporate Debtor (Hydric Infrastructure Pvt. Ltd.) executed the deed of guarantee for…

## 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)

---

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/piramal-capital-housing-finance-ltd-ors-vs-hydric-infrastructure-pvt-ltd-ors-17c97228