# In the matter of Sare Gurugram Pvt. Ltd. Company Petition No. (IB)-300(PB)-2020

> NCLT judgment dated 2021-03-09. Citation: TCN-2021-NCLT-02776. The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 Mar 2021
- **Citation:** TCN-2021-NCLT-02776
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sare-gurugram-pvt-ltd-company-petition-no-ib-300pb-2020-0fb5f38e

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Asset Care and Reconstruction Enterprises Ltd. (Financial Creditor) against Sare Gurugram Pvt Ltd. (Corporate Debtor). The Financial Creditor claims that the Corporate Debtor defaulted in repaying ₹4,62,34,02,742. Altico Capital India Ltd. had disbursed ₹375,00,00,000 to the Corporate Debtor through debenture trust deeds and a facility agreement. The debt was later assigned to the present Financial Creditor. An intervener application was filed by SARE Public Company Ltd. through its Receiver, arguing that the Corporate Debtor, being a subsidiary, is bound by agreements between SARE Public and Wafra, prohibiting the creation of any charge over its assets.

## Facts

1. Asset Care and Reconstruction Enterprises Ltd. filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sare Gurugram Pvt Ltd., claiming a default in repayment of ₹4,62,34,02,742.
2. Altico Capital India Ltd. disbursed ₹375,00,00,000 to Sare Gurugram Pvt Ltd. through two Debenture Trust Deeds dated 04.12.2015 and 24.11.2016, and a Facility Agreement dated 14.05.2018.
3. The disbursement schedule includes ₹95cr NCDs, ₹220cr NCDs, and a ₹60crore Term Loan disbursed between 2015 and 2019.
4. The entire debt was assigned to Asset Care and Reconstruction Enterprises Ltd. via an Assignment Agreement dated 23.03.2019.
5. SARE Public Company Ltd., through its Receiver, filed an intervener application (IA3783/2020), stating that Sare Gurugram

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## Issues and analysis

### Issue 1: Whether the Bench can pass an order on the Section 7 petition filed by the Creditor, considering …

**Ratio:** Once an IBC proceeding is initiated, unless the proceeding in which an order has been

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**Reasoning:** The court reasoned that notwithstanding any order passed against the Corporate Debtor,

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**Interpretation:** The court interpreted that the IBC has precedence over other proceedings unless

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**Application:** The court applied this ratio by stating that the High Court's order did not

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Asset Care and…
- **Respondents:** Sare Gurugram Pvt…

## Timeline

- **2015-12-04 — Debenture Tru…**: Execution of Debenture Trust Deed between Ramprastha SARE Reality Pvt. Ltd. and Axis…
- **2016-11-24 — Debenture Tru…**: Execution of Debenture Trust Deed between Ramprastha SARE Reality Pvt. Ltd. and Axis…

## 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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