# In the matter of Sunrise Naturopathy and Resorts Pvt. Ltd. C.P. No. (IB)-66-(PB)-2018

> NCLT judgment dated 2018-05-31. Citation: TCN-2018-NCLT-01344. Piramal Enterprises Limited, the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 31 May 2018
- **Citation:** TCN-2018-NCLT-01344
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunrise-naturopathy-and-resorts-pvt-ltd-cp-no-ib-66-pb-2018-0a7ddb84

## Summary

### Background

Piramal Enterprises Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sunrise Naturopathy and Resorts Private Limited, the Corporate Debtor. The application pertains to a financial debt arising from a guarantee provided by the Corporate Debtor for a loan facility extended to All India Society for Advance Education and Research (Original Borrower). The Financial Creditor claims that the Corporate Debtor defaulted on its guarantee obligations.

## Facts

Piramal Enterprises Limited ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sunrise Naturopathy and Resorts Private Limited ('Corporate Debtor'). The Corporate Debtor acted as a guarantor for a loan facility of Rs. 38,00,00,000/- granted by the Financial Creditor to All India Society for Advance Education and Research ('Original Borrower'). The loan was disbursed in two tranches on 28th October 2013 (Rs. 31,17,00,000) and 1st November 2013 (Rs. 6,83,00,000). The Corporate Debtor guaranteed the repayment of the said debt under a Deed of Guarantee dated 18th October 2013. The Original Borrower defaulted on the loan, with the default date being 30th

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the …

**Ratio:** The liability of the Principal Borrower and the Guarantor is co-extensive, and the

…

**Reasoning:** The Tribunal considered the arguments presented by the Financial Creditor's counsel and

…

**Interpretation:** The principle of co-extensive liability means that the creditor can proceed

…

**Application:** In this case, the Corporate Debtor acted as a guarantor for the loan facility

…

## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Piramal Enterprise…
- **Respondents:** Sunrise Naturopath…

## Timeline

- **1947-04-26 — Incorporation of…**: The 'financial creditor' is a…
- **1999-05-25 — Incorporation of…**: Sunrise Naturopathy and Resorts Private…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sunrise-naturopathy-and-resorts-pvt-ltd-cp-no-ib-66-pb-2018-0a7ddb84