# In the  matter of Drastee Realcon Private Limited

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-05319. Phoenix ARC Private Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-05319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/drastee-realcon-private-limited-645b534e

## Summary

### Background

Phoenix ARC Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Drastee Realcon Private Limited (Corporate Debtor) due to default in repayment of a loan.

## Facts

L&T Finance Limited initially sanctioned a loan of Rs. 100,00,00,000/- to Drastee Realcon Private Limited on 14.02.2020.

An amount of Rs. 86,00,00,000/- was disbursed out of the sanctioned loan amount.

The loan agreement was executed on 27.02.2020, and the loan was to be utilized for a residential group housing project.

The Corporate Debtor remitted interest on the loan until 15 June 2021 and subsequently defaulted.

The Financial Creditor issued a recall notice on 25.11.2021, demanding the total outstanding amount of Rs. 92,63,44,418.98/-.

The Corporate Debtor failed to pay the outstanding amount, leading to the filing of the Section 7 application.

L&T Finance Limited was substituted by Phoenix ARC Private Limited as the Financial Creditor via an order dated 26.05.2023.

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## Issues and analysis

### Issue 1: Whether the applicant is …

**Ratio:** The Adjudicating Authority relied on Section 5(8) of the I&B Code, 2016, which

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**Reasoning:** The Adjudicating Authority found that the loan was disbursed, and interest was paid by

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**Interpretation:** The Adjudicating Authority interpreted that the disbursement of the loan and

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**Application:** The Adjudicating Authority applied the definition of financial debt to the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Phoenix Arc…; L&T Finance…
- **Respondents:** DRASTEE REALCON…
- **Other parties:** Ajit Gyanchand…; Companies Act,…; +1 more
- **Advocates:** Sh. Arvind…; Wamika T…; +6 more

## Timeline

- **2019-11-23 — Loan Appli…**: Corporate Debtor submitted a loan…
- **2020-02-14 — Loan San…**: L&T Housing Finance Limited sanctioned a loan of INR 100,00,00,000 to the Corporate…

## 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)

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