# In the matter of Ramu Murgani Vs Edelweiss Asset Reconstructions Company Ltd.

> NCLAT judgment dated 2024-11-04. Citation: TCN-2024-NCLAT-00128. The case involves an appeal against an order passed by the Adjudicating Authority on…

- **Court:** NCLAT
- **Order date:** 4 Nov 2024
- **Citation:** TCN-2024-NCLAT-00128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ramu-murgani-vs-edelweiss-asset-reconstructions-company-ltd-5c22cf04

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority on 2024-07-16, which admitted a Section 7 application filed by Edelweiss Asset Reconstructions Company Ltd. The appellant, Ramu Murgani, Erstwhile Director of Viilbery Healthcare Pvt. Ltd, challenges this order. The counsel for the appellant submits that a portion of the amount has already been paid by the Personal Guarantors, with a balance remaining. The Adjudicating Authority had previously permitted the Corporate Debtor to make half payment by 2024-06-30 and the second half by 2024-09-30.

## Facts

Ramu Murgani, Erstwhile Director of Viilbery Healthcare Pvt. Ltd, filed an appeal against an order by the Adjudicating Authority dated 2024-07-16, which admitted a Section 7 application filed by Edelweiss Asset Reconstructions Company Ltd. The appellant's counsel stated that Rs. 2.75 Cores had already been paid by the Personal Guarantors, with Rs. 3.41 Crores remaining. The Adjudicating Authority had previously permitted the Corporate Debtor to make half payment by 2024-06-30 and the second half by 2024-09-30. The appellant failed to make the payments within the stipulated time. The Respondent's counsel argued that the Appellant had not made any payment by 2024-06-30. The court directed the Appellant to pay the outstanding amount with 9% interest by 2024-10-31. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by Edelweiss …

**Ratio:** The Adjudicating Authority has the power to admit a Section 7 application if the

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**Reasoning:** The court found no error in the Adjudicating Authority's decision to admit the Section 7

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate corporate

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**Application:** The court applied the principle that the Adjudicating Authority was justified

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Ramu Mu…
- **Respondents:** Viilbery Healthcar…; Edelweiss Asset…

## Timeline

- **2024-07-16 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting the Section 7 application filed by…
- **2024-05-17 — Order permitting half…**: Adjudicating Authority passed an Order permitting the Corporate Debtor to make half…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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