# In the matter of Nirmal Lifestyle Realty Private Limited C.P. No. 315-IBC-MB-2019

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00260. AASAN Corporate Solutions Private Limited, the Financial Creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nirmal-lifestyle-realty-private-limited-cp-no-315-ibc-mb-2019-9ec5f3f2

## Summary

### Background

AASAN Corporate Solutions Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Nirmal Lifestyle Realty Private Limited, the Corporate Debtor, for a financial debt of Rs. 258,36,32,228/-. The Financial Creditor had granted two loans to the Corporate Debtor, secured by various mortgage deeds and guarantees. The Corporate Debtor defaulted on both loans. The Corporate Debtor opposed the admission of the petition, arguing that the debt was adequately secured and that the Financial Creditor had breached the contract.

## Facts

AASAN Corporate Solutions Private Limited (Financial Creditor) filed a company petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Nirmal Lifestyle Realty Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor had granted two loans to the Corporate Debtor. The first loan was for Rs. 230,00,00,000/-, secured by a Deed of Mortgage, Amendment Agreement to the Indenture of Mortgage, Security Trustee Agreement, Personal Guarantee, Corporate Guarantee, and Demand Promissory Note, all dated around March 30-31, 2017. The repayment period for the first loan was extended multiple times, but the Corporate Debtor only repaid a portion of the principal and interest. The second loan was

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## Issues and analysis

### Issue 1: Whether the Company Petition is maintainable under Section 7 of the Code in view of the …

**Ratio:** The remedy of the Mortgagee/Financial Creditor available under the IBC is in addition to

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**Reasoning:** The NCLT considered the arguments of both parties and noted the contradictory

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**Interpretation:** The interpretation of Section 7 of the IBC allows a financial creditor to

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**Application:** The NCLT applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** AASAN Corporate…
- **Respondents:** NIRMAL LIFESTYLE…

## Timeline

- **2017-03-30 — First Loan Security…**: Execution of Deed of Mortgage, Security Trustee Agreement, Personal Guarantee, Corporate…
- **2017-04-10 — Amendment Ag…**: Execution of Amendment Agreement to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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