# In the matter of Pradeep P. Agarwal vs. Indiabulls Asset Reconstruction Company Ltd. & Ors.

> NCLAT judgment dated 2024-04-19. Citation: TCN-2024-NCLAT-00496. This appeal was filed by the Suspended Director of Phulchand Exports Private Ltd., Pradeep P.…

- **Court:** NCLAT
- **Order date:** 19 Apr 2024
- **Citation:** TCN-2024-NCLAT-00496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pradeep-p-agarwal-vs-indiabulls-asset-reconstruction-company-ltd-ors-a7c9baf2

## Summary

### Background

This appeal was filed by the Suspended Director of Phulchand Exports Private Ltd., Pradeep P. Agarwal, against the order dated 22.03.2024 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which admitted a Section 7 application filed by Indiabulls Asset Reconstruction Company Limited. The NCLT also disposed of IA No.2889 of 2022 filed by the Corporate Debtor as infructuous. The appeal contests the NCLT's decision to admit the Section 7 application without awaiting the outcome of IA No.5177 of 2023, which sought a rehearing of the matter due to new developments, including an order passed by the Debt Recovery Tribunal (DRT).

## Facts

Indiabulls Housing Finance Limited (IHFL) sanctioned five loans to Phulchand Exports Private Limited (Corporate Debtor) between 2014 and 2018, secured by deposit of title deeds. IHFL initiated SARFAESI proceedings in April-May 2019. IHFL issued a notice for e-auction on 27.08.2019. On 30.09.2019, IHFL assigned the loan facilities to Indiabulls Asset Reconstruction Company Limited. Prateek Agarwal, owner of the secured asset, filed a Securitization Application No.116 of 2019 before the Debt Recovery Tribunal (DRT), challenging the sale notices. He also filed Writ Petition No. 20 of 2020 before the Bombay High Court and a SLP challenging the order dated 14.05.2020. Indiabulls Asset Reconstruction Company Limited filed a Section 7 application under the IBC. The Corporate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) was justified in pronouncing the order admitting the …

**Ratio:** The appellate court has the power to take all decisions that could have been passed by

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority should have awaited the orders in IA

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**Interpretation:** The principle is that an appellate court can consider subsequent events to

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**Application:** In this case, the DRT order dated 05.10.2023, which quashed the Demand Notice,

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Pradeep P.…
- **Respondents:** Phulchand Exports…; Indiabulls Asset…

## Timeline

- **2014-01-01 — Loan San…**: Indiabulls Housing Finance Limited sanctioned five loans to the Corporate Debtor between…
- **2019-04-01 — SARFAESI Proc…**: IHFL initiated SARFAESI proceedings against…

## 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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