The appeal challenges the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) against Rite Developers Private Limited. The Adjudicating Authority admitted the application based on defaults in loan repayment. The appellant, the suspended director of the corporate debtor, argues that the application was barred by Section 10A of the IBC, which prohibits the initiation of CIRP for defaults occurring during a specified period related to the COVID-19 pandemic. The financial creditor, Piramal Capital & Housing Finance Limited, claims that the default occurred prior to the 10A period, making the application maintainable.
Rite Developers Private Limited (Corporate Debtor) availed a project term loan of Rs. 60 crores from Dewan Housing Finance Corporation Limited (DHFL), later succeeded by Piramal Capital & Housing Finance Limited (Financial Creditor). The loan agreement, dated 2018-06-06, stipulated repayment in 24 equated monthly installments (EMIs) commencing after 36 months from the first disbursement. Interest payments were due on the 15th of each month. The Corporate Debtor defaulted on interest payments from June 2018. By February 2020, the defaulted amount was approximately Rs. 10,51,94,998. A loan recall notice was issued on 2020-08-28, demanding repayment of Rs. 68,82,64,595. The Financial Creditor filed a Section 7 application in July 2022, which was admitted by the
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Loan agreement between Rite Developers…
The Corporate Debtor…
The appeal challenges the admission of a Section 7 application under the Insolvency and Bankruptcy Code (IBC) against Rite Developers Private Limited. The Adjudicating Authority admitted the application based on defaults in loan repayment. The appellant, the suspended director of the corporate debtor, argues that the application was barred by Section 10A of the IBC, which prohibits the initiation of CIRP for defaults occurring during a specified period related to the COVID-19 pandemic. The financial creditor, Piramal Capital & Housing Finance Limited, claims that the default occurred prior to the 10A period, making the application maintainable.
Rite Developers Private Limited (Corporate Debtor) availed a project term loan of Rs. 60 crores from Dewan Housing Finance Corporation Limited (DHFL), later succeeded by Piramal Capital & Housing Finance Limited (Financial Creditor). The loan agreement, dated 2018-06-06, stipulated repayment in 24 equated monthly installments (EMIs) commencing after 36 months from the first disbursement. Interest payments were due on the 15th of each month. The Corporate Debtor defaulted on interest payments from June 2018. By February 2020, the defaulted amount was approximately Rs. 10,51,94,998. A loan recall notice was issued on 2020-08-28, demanding repayment of Rs. 68,82,64,595. The Financial Creditor filed a Section 7 application in July 2022, which was admitted by the
…Loan agreement between Rite Developers…
The Corporate Debtor…