# In the matter of Akund Buildcon Private Limited C.P.(IB)-3245-(MB)-2018

> NCLT judgment dated 2019-02-19. Citation: TCN-2019-NCLT-04774. Indiabulls Housing Finance Limited (IHFL) filed a petition under Section 7 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 19 Feb 2019
- **Citation:** TCN-2019-NCLT-04774
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akund-buildcon-private-limited-cpib-3245-mb-2018-d0500365

## Summary

### Background

Indiabulls Housing Finance Limited (IHFL) filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Akund Buildcon Private Limited (ABPL). IHFL claimed that ABPL defaulted on a loan of ₹47 Crores granted under a Loan Agreement dated 2015-09-28. The total amount claimed in default as of 2018-08-24 was ₹79,49,28,344 along with pending TDS of ₹22,43,285. IHFL issued a recall notice dated 2018-07-21 under Section 13(2) of SARFAESI Act, 2002. ABPL had created a mortgage over properties as security. The account was classified as a Non-Performing Asset (NPA) on 2016-05-05.

## Facts

Indiabulls Housing Finance Limited (IHFL) sanctioned a loan of ₹47 Crores to Akund Buildcon Private Limited (ABPL) on 2015-09-28 for the acquisition and development of residential units. The loan agreement was executed on the same date. ABPL defaulted on the loan, with no EMI payments made after 2016-01-21. IHFL declared the loan as a Non-Performing Asset (NPA). IHFL issued a recall notice under Section 13(2) of SARFAESI Act on 2018-07-21. As of 2018-08-24, the total outstanding amount was ₹79,49,28,344 along with pending TDS of ₹22,43,285. ABPL had mortgaged properties to IHFL as security for the loan. IHFL filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against ABPL.

## Issues and analysis

### Issue 1: Whether the debt claimed by Indiabulls Housing Finance Limited qualifies as a 'Financial Debt' …

**Ratio:** The definition of 'Financial Debt' under Section 5(8) of the IBC includes debt disbursed

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**Reasoning:** The court relied on its previous decision in IL & FS Financial Services Ltd. V/s.

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**Interpretation:** The interpretation of 'Financial Debt' extends beyond traditional loans to

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**Application:** The court found that the loan provided by IHFL to ABPL, intended for the

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Indiabulls…
- **Respondents:** Akund Buildcon…
- **Advocates:** Gaurav…; Chirag K…; +4 more

## Timeline

- **2015-09-28 — Loan Agreeme…**: Loan Agreement between Indiabulls Housing Finance Limited and Akund Buildcon Private…
- **2016-01-21 — Default on EMI…**: Akund Buildcon Private Limited stopped…

## 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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