# In the matter of  Reliance Commercial Finance Limited Vs. Darode Jog Builder Private Limited, Company Appeal(AT)(Insolvency)No.1005 of 2021

> NCLAT judgment dated 2022-09-19. Citation: TCN-2022-NCLAT-00207. This is a Company Appeal filed by Reliance Commercial Finance Limited (Financial Creditor)…

- **Court:** NCLAT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLAT-00207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/reliance-commercial-finance-limited-vs-darode-jog-builder-private-limited-compan-3f1bfc02

## Summary

### Background

This is a Company Appeal filed by Reliance Commercial Finance Limited (Financial Creditor) against an order dated July 11, 2022, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in CP(IB) 498/MB/2020. The Appellant-Financial Creditor had sanctioned Term-Loans of Rs. 10.5 Crores and Rs. 8.5 Crores to the Corporate Debtor on July 29, 2013. The Loan Account of the Corporate Debtor was declared Non-Performing Assets in March 2017 and February 2017. The Appellant preferred Section 7 Application on November 4, 2019, claiming Rs. 15,79,41,658/- as 'due and payable'. The Company Petition was adjourned several times. On July 6, 2022, the Corporate Debtor acknowledged its liability and offered Rs. 12.75 Crores to be paid within 45 days. The

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## Facts

Reliance Commercial Finance Limited (Appellant), a Financial Creditor, sanctioned term loans of Rs. 10.5 Crores and Rs. 8.5 Crores to Darode Jog Builder Private Limited (Respondent), the Corporate Debtor, on July 29, 2013. The loan accounts were declared Non-Performing Assets (NPA) on March 17, 2017, and February 25, 2017, respectively. On November 4, 2019, the Appellant filed a Section 7 application (CP(IB) 498/MB/2020) claiming Rs. 15,79,41,658/- as due and payable. During a hearing on July 6, 2022, the Corporate Debtor acknowledged its liability and offered Rs. 12.75 Crores to be paid within 45 days. The Adjudicating Authority directed the Financial Creditor to obtain instructions. On July 11, 2022, the Corporate Debtor stated its readiness to deposit the entire

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in disposing of the Company Petition despite …

**Ratio:** The Supreme Court in “Vidarbha Industries Power Limited Vs. Axis Bank Limited” held that

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority had only given an opportunity to the

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**Interpretation:** The interpretation is that the Adjudicating Authority has the discretion to

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**Application:** In this case, the Adjudicating Authority's decision to allow the Corporate

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Reliance Commercia…
- **Respondents:** Darode Jog…

## Timeline

- **2013-07-29 — Loan San…**: Appellant sanctioned Term-Loan of Rs. 10.5 Crores and Rs. 8.5 Crores to the Corporate…
- **2017-03-01 — Loan Account Declared…**: Loan Account of the Corporate Debtor…

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