# In the matter of Himatsingka Resorts Private Limited Dy.No.733-2017

> NCLT judgment dated 2019-03-08. Citation: TCN-2019-NCLT-04520. The case involves an application under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 8 Mar 2019
- **Citation:** TCN-2019-NCLT-04520
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/himatsingka-resorts-private-limited-dyno733-2017-1fcaf99d

## Summary

### Background

The case involves an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by Neha Himatsingka and Kanishka Himatsingka, the Financial Creditors (FCs), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Himatsingka Resorts Pvt. Ltd., the Corporate Debtor (CD). The FCs alleged that the CD defaulted on unsecured loans disbursed by them. The CD contested the application, arguing that the present management (BK Group) had not committed any default and that the debt was barred by limitation. The Adjudicating Authority initially dismissed the application, but the NCLAT set aside the order and remitted the matter

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## Facts

Neha Himatsingka (FC1) disbursed an unsecured loan of Rs. 51,50,000.00 to M/s. Himatsingka Resorts Pvt. Ltd. (CD) in six installments between 2013-04-30 and 2014-04-24. Kanishka Himatsingka (FC2) disbursed an unsecured loan of Rs. 25,00,000.00 to the CD on 2013-02-27. The CD defaulted on repayment of both loans. As of 2017-11-15, the amount due to FC1 was Rs. 83,30,499.00, and the amount due to FC2 was Rs. 38,52,630.00. The FCs jointly filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of CIRP against the CD. The CD argued that the present management (BK Group) had not committed any default and that the debt was barred by limitation. The CD also claimed that the previous management (RHS Group), which included the FCs,

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency & Bankruptcy Code, 2016, for …

**Ratio:** Section 7 of the Insolvency & Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority considered the NCLAT's decision, which had already determined

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The Adjudicating Authority applied the provisions of Section 7 and the NCLAT's

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## Parties

- **Judges:** Jinan…
- **Appellants:** Neha Himat…
- **Respondents:** M/s Himatsingka…

## Timeline

- **2013-02-27 — Loan Disburseme…**: Kanishka Himatsingka (FC2) disbursed an unsecured loan of Rs. 25,00,000.00 to the…
- **2013-04-30 — Loan Disbursement by…**: Neha Himatsingka (FC1) began disbursing an unsecured loan to the Corporate Debtor in…

## 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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