# In the matter of Luxora Infrastructure Pvt. Ltd. T.C.P. No. 420-(MAH)-2017

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00209. The case involves a petition filed under Section 7 of the Insolvency Code regarding a debt of…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/luxora-infrastructure-pvt-ltd-tcp-no-420-mah-2017-5e0d4bf3

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency Code regarding a debt of Rs. 109,22,84,085/- against Luxora Infrastructure Pvt. Ltd. IFCI Limited initially filed the petition, but later Edelweiss ARC became involved as the assignee of the debt. The petitioner executed a Deed of Assignment dated 15th February, 2017, with the Applicant/Assignee, assigning the debt due and payable by the Respondent. The Applicant/Assignee is registered as an Asset Reconstruction Company under Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002).

## Facts

IFCI Limited filed a petition against Luxora Infrastructure Pvt. Ltd. under Section 7 of the Insolvency Code for a debt of Rs. 109,22,84,085/-. The petition was initially filed by IFCI Limited. Subsequently, IFCI Limited executed a Deed of Assignment dated February 15, 2017, assigning the debt to Edelweiss ARC. Edelweiss ARC is registered as an Asset Reconstruction Company. Edelweiss ARC then filed an application to withdraw the petition, stating that the Corporation Resolution Process was being kept in abeyance. The court considered the assignment and the withdrawal request.

## Issues and analysis

### Issue 1: Whether the assignment of debt from IFCI Limited to Edelweiss ARC is valid and should be recognized …

**Ratio:** The principle of assignment allows a party to transfer its rights and obligations under a

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**Reasoning:** The court placed the Deed of Assignment on record and substituted Edelweiss ARC for IFCI

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**Interpretation:** The interpretation of assignment laws allows for the transfer of debt and

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**Application:** The court's action of substituting Edelweiss ARC demonstrates the application

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** IFCI Li…
- **Respondents:** Luxora Infrastruct…

## Timeline

- **2017-02-15 — Deed of Ass…**: IFCI Limited executed a Deed of Assignment…
- **2017-07-14 — Form No. 1…**: The Petitioner filed Form No. 1 under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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