# In the matter of Vishal Agarwal, Erstwhile Director of Gagan I-Land Township Pvt. Ltd. vs. ICICI Prudential Real Estate AIF-I & Anr. Company Appeal (AT) (Insolvency) No. 1016 of 2022

> NCLAT judgment dated 2023-01-23. Citation: TCN-2023-NCLAT-00764. The appeal was filed against the order dated 27.07.2022 passed by the Adjudicating Authority,…

- **Court:** NCLAT
- **Order date:** 23 Jan 2023
- **Citation:** TCN-2023-NCLAT-00764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vishal-agarwal-erstwhile-director-of-gagan-i-land-township-pvt-ltd-vs-icici-prud-0c238981

## Summary

### Background

The appeal was filed against the order dated 27.07.2022 passed by the Adjudicating Authority, which admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by the Financial Creditor. The Appellant sought adjournments to propose a One Time Settlement (OTS) with the Financial Creditor. The Appellant argued that the default occurred during the period prohibited under Section 10A of the IBC, making the application not maintainable. The Respondent argued that the Corporate Debtor admitted to defaults in interest payments prior to the Section 10A period.

## Facts

Vishal Agarwal, the erstwhile director of Gagan I-Land Township Pvt. Ltd., filed an appeal against the admission of a Section 7 application by the Adjudicating Authority based on a default to ICICI Prudential Real Estate AIF-I & Anr. The Appellant argued that the default occurred during the period prohibited under Section 10A of the IBC, specifically claiming the date of default for repayment as per Annexure 3 to the Debenture Subscription Agreement was 31.08.2020. However, the Respondent contended that the Corporate Debtor admitted to defaults in interest payments for the quarters ending September 2019 and December 2019, prior to the Section 10A period, in a letter dated September 9, 2021. The Adjudicating Authority noted this admission and the fact that the

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC was maintainable given the Appellant's claim …

**Ratio:** Section 10A of the IBC prohibits the initiation of corporate insolvency resolution

…

**Reasoning:** The court reasoned that the Corporate Debtor admitted to defaults in interest payments

…

**Interpretation:** Section 10A is interpreted to provide relief for defaults directly caused by

…

**Application:** The court applied the ratio to the facts by determining that the default

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vishal Ag…
- **Respondents:** Gagan I-Land…; ICICI PRUDENTIAL…

## Timeline

- **2022-07-27 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting the application filed under Section…
- **2022-08-24 — Adjournment…**: Adjournment was sought on…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/vishal-agarwal-erstwhile-director-of-gagan-i-land-township-pvt-ltd-vs-icici-prud-0c238981