# In the matter of Unishire Regency Park LLP I.A. No. 554-2019 in CP (IB) No. 229-BB-2019

> NCLT judgment dated 2020-05-29. Citation: TCN-2020-NCLT-01273. India Infoline Finance Limited, a Non-Banking Financial Institution, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 29 May 2020
- **Citation:** TCN-2020-NCLT-01273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unishire-regency-park-llp-ia-no-554-2019-in-cp-ib-no-229-bb-2019-12ef1ad5

## Summary

### Background

India Infoline Finance Limited, a Non-Banking Financial Institution, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Unishire Regency Park LLP, the Corporate Debtor, for initiating a Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 15,22,13,219 as of 07.03.2019. The Financial Creditor had extended financial assistance to the Corporate Debtor for a residential project, 'Unishire Xperience', via a loan agreement dated 20.03.2015, sanctioning Rs. 13 Crore with a 22% interest rate. The Corporate Debtor defaulted on repayments starting 30.06.2015, leading to the petition. An I.A. No.554 of 2019 was filed by Reliance Capital AIF Trustee Company Private Limited seeking impleadment, claiming they provided

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## Facts

India Infoline Finance Limited (Financial Creditor) provided financial assistance of Rs. 13 Crore to Unishire Regency Park LLP (Corporate Debtor) for the 'Unishire Xperience' project under a loan agreement dated 20.03.2015 with a 22% interest rate. The Corporate Debtor defaulted on repayments from 30.06.2015. The Financial Creditor filed a petition under Section 7 of the IBC, 2016, claiming a default of Rs. 15,22,13,219 as of 07.03.2019. Designated partners of the Corporate Debtor executed personal guarantees and a mortgage deed in favor of the Financial Creditor, and jointly issued a Demand Promissory Note. The Financial Creditor annexed bank statements showing disbursement of Rs. 12,15,19,320 and a notice dated 07.03.2019 demanding payment of Rs. 7,84,23,572 plus

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016 is maintainable given the alleged defaults …

**Ratio:** The proceedings under Section 7 of the IBC are summary proceedings where a debt and

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**Reasoning:** The NCLT relied on the judgment in Civil Appeal Nos.8337-8338 of 2017, which upheld that

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**Interpretation:** Section 7 of the IBC provides the process for initiating CIRP by a financial

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**Application:** The NCLT found that the Financial Creditor had provided sufficient evidence,

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** India Infoline…
- **Respondents:** Unishire Regency…

## Timeline

- **2015-03-20 — Loan Agreeme…**: Loan Agreement between India Infoline Finance Limited and Unishire Regency Park LLP for…
- **2015-06-30 — First Defau…**: Corporate Debtor…

## 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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