# In the matter of Superlative Infrastructure Pvt. Ltd. (IB)-193(PB)-2019

> NCLT judgment dated 2020-02-11. Citation: TCN-2020-NCLT-02010. The case involves company petitions filed against subsidiary companies Bhisham Infrastructure…

- **Court:** NCLT
- **Order date:** 11 Feb 2020
- **Citation:** TCN-2020-NCLT-02010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/superlative-infrastructure-pvt-ltd-ib-193pb-2019-c2248041

## Summary

### Background

The case involves company petitions filed against subsidiary companies Bhisham Infrastructure Pvt. Ltd., Manogyan Estates Pvt. Ltd., and Superlative Infrastructure Pvt. Ltd., which are subsidiaries of Adel Landmarks Limited. Edelweiss Asset Reconstruction Company Pvt. Ltd., the financial creditor, initiated CIRP against Adel Landmarks Limited and subsequently filed Section 7 applications against the subsidiary companies due to their guarantees on a loan availed by Adel Landmarks Limited. Adel Landmarks defaulted on the loan repayment, leading the lender to invoke the guarantees.

## Facts

Edelweiss Asset Reconstruction Company Pvt. Ltd. filed company petitions against Bhisham Infrastructure Pvt. Ltd., Manogyan Estates Pvt. Ltd., and Superlative Infrastructure Pvt. Ltd. These three companies are subsidiaries of Adel Landmarks Limited. The petitions were filed under Section 7 of the IBC because the subsidiary companies had guaranteed a total debt of ₹170 Crore on behalf of Adel Landmarks Limited. Adel Landmarks Limited defaulted on the loan, leading Edelweiss to recall the loan facility through a Loan Recall Notice dated 2018-07-02. NCLAT directed the NCLT to admit these petitions and consolidate the CIRP with Adel Landmarks Limited. The subsidiary companies admitted to the debt and default. The court found that the petitioner had proved the existence of

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## Issues and analysis

### Issue 1: Whether the company petitions against the subsidiary companies (Bhisham Infrastructure Pvt. Ltd., …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court reasoned that the subsidiary companies had provided guarantees for the loan

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**Interpretation:** Section 7 of the IBC is interpreted to allow for the initiation of CIRP against

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**Application:** In this case, the subsidiary companies acted as guarantors for the loan taken

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## Parties

- **Judges:** B.S.V. Prakash…; SH. S.K MOH…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Adel Landmarks…; Manogyan Estates…

## Timeline

- **2018-07-02 — Loan Recall…**: Edelweiss Asset Reconstruction Company Pvt. Ltd. issued a Loan Recall Notice to Adel…
- **2020-02-11 — Order Del…**: The NCLT delivered the order admitting the company petitions against the subsidiary…

## 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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