# In the matter of Maharashtra Theatres Private Limited CP No. 115-(IB)-MB-V-2021

> NCLT judgment dated 2021-10-05. Citation: TCN-2021-NCLT-00858. Axis Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Oct 2021
- **Citation:** TCN-2021-NCLT-00858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maharashtra-theatres-private-limited-cp-no-115-ib-mb-v-2021-a6774930

## Summary

### Background

Axis Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Maharashtra Theatres Private Limited, the Corporate Debtor, due to a default in repayment of loan amounting to Rs. 55,75,27,571 as of 31.10.2020. The Corporate Debtor had availed various credit facilities from the Financial Creditor, including term loans, overdraft facilities, and bank guarantees, secured by hypothecation of rent receivables, mortgage of office premises, and personal guarantees from Mr. Anubhav Aggarwal and Mr. Anil Aggarwal. The Corporate Debtor defaulted on its repayment obligations, leading the Financial Creditor to declare the account as a Non-Performing Asset (NPA) and recall the

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## Facts

Axis Bank Limited, the Financial Creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against Maharashtra Theatres Private Limited, the Corporate Debtor, due to a default of Rs. 55,75,27,571 as of 31.10.2020. The Corporate Debtor had availed various credit facilities, including term loans, overdraft facilities, and bank guarantees, secured by hypothecation of rent receivables, mortgage of office premises, and personal guarantees from Mr. Anubhav Aggarwal and Mr. Anil Aggarwal. The Financial Creditor declared the Corporate Debtor's account as a Non-Performing Asset (NPA) on 29.01.2019 and recalled the credit facilities on 11.07.2019. The petition was filed on 30.12.2020. The Corporate Debtor contended that the petition was not maintainable as the

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## Issues and analysis

### Issue 1: Whether the provision for Section 10A of the Insolvency and Bankruptcy Code, 2016, is attracted to …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, suspends the initiation of CIRP

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**Reasoning:** The court reasoned that the notification dated 06.06.2020 categorically declared that no

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**Interpretation:** Section 10A bars the filing of applications for CIRP for defaults arising on or

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**Application:** In this case, the default occurred on 31.10.2020, which is after 25th March,

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## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** Axis Bank L…
- **Respondents:** Maharashtra…
- **Advocates:** Ajay K…; Aniruth Purusotham…

## Timeline

- **2008-02-27 — Sanction…**: Petitioner sanctioned an…
- **2009-12-16 — Sanction…**: Petitioner sanctioned an amount of Rs. 22.50 crores. The limit was further enhanced to…

## 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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