# In the matter of Rajeev R. Jain Vs. AASAN Corporate Solutions Private Limited & Anr. Company Appeal (AT) (Insolvency) No. 1085 of 2021

> NCLAT judgment dated 2022-01-12. Citation: TCN-2022-NCLAT-00669. This appeal was filed against the Adjudicating Authority's order dated 06.12.2021, which…

- **Court:** NCLAT
- **Order date:** 12 Jan 2022
- **Citation:** TCN-2022-NCLAT-00669
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajeev-r-jain-vs-aasan-corporate-solutions-private-limited-anr-company-appeal-f8f25684

## Summary

### Background

This appeal was filed against the Adjudicating Authority's order dated 06.12.2021, which admitted C.P. No. 315/IBC/MB/2019 filed by the Respondent-Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appeal was filed by Rajeev R. Jain, Director (Suspended) of the Corporate Debtor, challenging the impugned judgment. The Corporate Debtor obtained two loans from the Financial Creditor through deposit agreements dated 31.03.2017 and 27.10.2017, secured by Deeds of Mortgage. The Financial Creditor filed an application under Section 7 of the I&B Code, claiming a default of Rs. 258,36,32,228/-.

## Facts

Rajeev R. Jain, the Director (Suspended) of the Corporate Debtor, filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which admitted the application filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had obtained two loans from the Financial Creditor, secured by mortgage deeds. The first loan agreement was dated 31.03.2017 for Rs. 230,00,00,000/-, and the second was dated 27.10.2017 for Rs. 277,00,00,000/-. The Corporate Debtor defaulted on the repayment, leading the Financial Creditor to file an application under Section 7 of the I&B Code, claiming a default of Rs. 258,36,32,228/-. The Corporate Debtor opposed the application, arguing that the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in admitting the application under Section 7 …

**Ratio:** Section 7 of the I&B Code provides a special remedy to Financial Creditors, allowing

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**Reasoning:** The court reasoned that the terms and conditions of the mortgage deed did not put any

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**Interpretation:** The court interpreted Section 7 as providing a special remedy to Financial

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**Application:** The court applied the ratio to the facts of the case, noting that a default had

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Rajeev R.…
- **Respondents:** NIRMAL LIFESTYLE…; AASAN Corporate…

## Timeline

- **2017-03-31 — First Loan Ag…**: Corporate Debtor obtained a loan of Rs.…
- **2017-10-27 — Second Loan A…**: Corporate Debtor obtained a loan of Rs.…

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