# In the matter of Bhisham Infrastructure Pvt. Ltd. (IB)-192(PB)-2019

> NCLT judgment dated 2020-02-11. Citation: TCN-2020-NCLT-02009. The case involves company petitions filed against subsidiary companies, namely Bhisham…

- **Court:** NCLT
- **Order date:** 11 Feb 2020
- **Citation:** TCN-2020-NCLT-02009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhisham-infrastructure-pvt-ltd-ib-192pb-2019-33519a69

## Summary

### Background

The case involves company petitions filed against subsidiary companies, namely Bhisham Infrastructure Pvt. Ltd., Manogyan Estates Pvt. Ltd., and Superlative Infrastructure Pvt. Ltd., which are subsidiaries of Adel Landmarks Limited. Edelweiss Asset Reconstruction Company Pvt. Ltd., the financial creditor, initiated CIRP against Adel Landmarks Limited and subsequently filed Section 7 applications against the subsidiary companies after Adel defaulted on a loan of ₹170 Crore. The NCLAT directed the NCLT to admit these petitions and consolidate the CIRP proceedings with the holding company, Adel Landmarks Limited.

## Facts

Edelweiss Asset Reconstruction Company Pvt. Ltd. filed applications under Section 7 of the IBC against Manogyan Estates Pvt. Ltd. and other subsidiary companies (Bhisham Infrastructure Pvt. Ltd. and Superlative Infrastructure Pvt. Ltd.) of Adel Landmarks Limited. These subsidiary companies had guaranteed a total debt of ₹170 Crore on behalf of Adel Landmarks Limited. Adel Landmarks Limited defaulted on the loan, leading the financial creditor to recall the loan facility and invoke the guarantees. The subsidiary companies admitted to the debt and default. The NCLAT directed the NCLT to consolidate the CIRP of these companies with that of Adel Landmarks Limited. The loan recall notice was issued on 2018-07-02.

## Issues and analysis

### Issue 1: Whether the company petitions against the subsidiary companies should be admitted under Section 7 …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court reasoned that the subsidiary companies had admitted to the debt and default,

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**Interpretation:** Section 7 of the IBC is interpreted to allow for the initiation of CIRP against

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**Application:** The court applied Section 7 to the facts of the case, noting that the

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## Parties

- **Judges:** B.S.V. Prakash…; SH. S.K MOH…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Adel Landmarks…; Manogyan Estates…

## Timeline

- **2018-07-02 — Loan Recall…**: The financial creditor, Edelweiss Asset Reconstruction Company, recalled the loan…
- **2020-02-11 — Order Del…**: The NCLT delivered the order admitting the company petitions and consolidating the CIRP…

## 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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