# In the matter of Andes Township Private Limited IB-317-ND-2022

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04374. Piramal Capital & Housing Finance Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/andes-township-private-limited-ib-317-nd-2022-0cca68a6

## Summary

### Background

Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Andes Town Planners Private Limited. The application was filed due to a default on a debt of Rs. 1,56,16,92,505/-. The Financial Creditor claimed that the Corporate Debtor failed to repay a loan of Rs. 90 crores sanctioned on 10.09.2014, leading to the issuance of a loan recall notice on 01.02.2020.

## Facts

On 29.09.2014, Andes Town Planners (Borrower) Corporate Debtor, M/s Rohtas Project (Co-borrower) and Financial creditor entered into a loan agreement. A loan of Rs. 90 crores was approved and sanctioned to the Corporate Debtor for a duration of 60 months (5 years) based on a sanction letter dated 10.09.2014. The Financial creditor extended loan facility to the Corporate debtor relying on the representations and warranties of the Corporate debtor. Due to the non-payment of the term loans by Corporate debtor, the Financial creditor issued a Loan Recall Notice upon the Corporate debtor dated 1.02.2020 to pay the entire remaining dues amount. The Corporate debtor failed to respond to the notices. The Financial Creditor disbursed Rs. 88,35,13,404/- to the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed under …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Adjudicating Authority analyzed the facts and referred to the decision of the Hon'ble

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The Financial Creditor presented adequate evidence to establish the existence

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## Parties

- **Judges:** BACHU VENKAT…; BINOD KUMAR…
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** Andes Town…

## Timeline

- **2014-09-29 — Loan Agre…**: Andes Town Planners, Rohtas Project, and…
- **2014-09-10 — Sanction…**: Loan of Rs. 90 crores was…

## 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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