# In the matter of Manor Floated Limited CP (IB) No. 592-KB-2017

> NCLT judgment dated 2018-01-10. Citation: TCN-2018-NCLT-01946. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Jan 2018
- **Citation:** TCN-2018-NCLT-01946
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/manor-floated-limited-cp-ib-no-592-kb-2017-5813bd61

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Manor Floatel Limited, claiming a default of Rs. 32,22,46,170/-. The financial assistance was granted to the Corporate Debtor to set up a floating hotel. The Corporate Debtor defaulted in repayment, leading to the account being classified as NPA on 31/3/2008. The Financial Creditor also initiated recovery proceedings before the Debts Recovery Tribunal and issued a statutory notice under the SARFAESI Act, 2002.

## Facts

IDBI Bank Limited, the Financial Creditor, filed an application against Manor Floatel Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor had granted financial assistance to the Corporate Debtor to establish a floating hotel. The Corporate Debtor defaulted on payments, leading to the account being classified as a Non-Performing Asset (NPA) on March 31, 2008. The total amount of default as of June 30, 2017, was Rs. 32,22,46,170/-. The Financial Creditor also initiated recovery proceedings before the Debts Recovery Tribunal and issued a statutory notice under the SARFAESI Act, 2002. The Corporate Debtor admitted to availing Venture Capital Assistance of Rs. 587 lakh and a Venture Capital Fund Scheme of Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditor is maintainable under Section 7 of the …

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

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**Reasoning:** The Adjudicating Authority considered the documents and evidence presented by the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Adjudicating Authority found that the Financial Creditor had provided

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** IDBI Bank L…
- **Respondents:** MANOR FLOATEL…

## Timeline

- **2000-11-07 — Venture Capital Fund…**: Venture Capital Fund Scheme…
- **2003-05-06 — Venture Capital Fund…**: Venture Capital Fund Scheme…

## 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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