# In the matter of Mantri Techzone Private Limited

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-05419. Indiabulls Housing Finance Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Jun 2023
- **Citation:** TCN-2023-NCLT-05419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/mantri-techzone-private-limited-fcce93e8

## Summary

### Background

Indiabulls Housing Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Mantri Techzone Private Limited due to a default of Rs. 128,29,77,857/-.

## Facts

Indiabulls Housing Finance Limited sanctioned two loan facilities to Mantri Techzone Private Limited totaling Rs. 274,00,00,000.

The aggregate disbursed loan amount under the two loan agreements was Rs. 2,16,88,93,000.

The Corporate Debtor defaulted on payments, leading to a total default amount of Rs. 128,29,77,857, including interest and other charges.

The Financial Creditor issued loan recall notices dated 29.12.2021 and 03.01.2022 under the SARFAESI Act, 2002.

The Corporate Debtor's loan accounts were declared as NPA on 13.10.2021.

The Corporate Debtor proposed an OTS/Settlement to the Financial Creditor.

The date of default as mentioned in Form-1 is 01.01.2022 and the Company Petition has been filed on 15.02.2022.

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## Issues and analysis

### Issue 1: Whether the existence of an arbitration clause in …

**Ratio:** Section 238 of the Code has overriding effect over the Arbitration and Conciliation Act,

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**Reasoning:** The Adjudicating Authority is duty-bound to first decide the application under Section 7

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**Interpretation:** The existence of an arbitration clause does not prevent the initiation of CIRP

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**Application:** The Tribunal held that the arbitration clause does not bar the initiation of

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Indiabulls…
- **Respondents:** Mantri Techzone…
- **Other parties:** Rajesh Kumar…
- **Advocates:** Prasant…; Prateek…; +5 more

## Timeline

- **2022-02-15 — Petition…**: The present Petition has been filed on 15.02.2022 u/s 7 of the Insolvency and Bankruptcy…
- **2023-06-23 — Order Del…**: Order delivered on:23rd…

## 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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