# In the  matter of Drastee Realcon Private Limited

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-05318. 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-05318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/drastee-realcon-private-limited-9dc9ffe8

## Summary

### Background

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

## Facts

L&T Finance Limited initially filed the application under Section 7 of the IBC.

The debt was assigned to Phoenix ARC Private Limited, which was then substituted as the Financial Creditor.

The Corporate Debtor was incorporated on 13 November 2019 and is in the business of Real Estate development.

The Corporate Debtor submitted a loan application on 23 November 2019 to L & T Housing Finance Limited, which sanctioned a loan of Rs. 100,00,00,000/-.

A loan agreement was executed on 27.02.2020.

Out of the sanctioned loan amount, Rs. 86,00,00,000 was disbursed.

The Corporate Debtor remitted interest until 15 June 2021 and then defaulted.

The Financial Creditor classified the account as NPA on 13 October 2021.

A recall notice was issued on 25 November 2021.

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## Issues and analysis

### Issue 1: Whether the applicant is a Financial Creditor as …

**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, the Corporate Debtor had

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**Interpretation:** The Adjudicating Authority interpreted Section 5(8) to mean that if a debt is

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**Application:** The Adjudicating Authority applied this interpretation to the facts and

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## Parties

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

## Timeline

- **2019-11-23 — Loan Appli…**: Corporate Debtor submitted a loan…
- **2020-02-27 — Loan Agre…**: Loan agreement executed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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