# Assets Care and Reconstruction Enterprise Ltd Vs Sujyoti Developers Pvt. Ltd

> NCLT judgment dated 2025-06-25. Citation: TCN-2025-NCLT-00750. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Jun 2025
- **Citation:** TCN-2025-NCLT-00750
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/assets-care-and-reconstruction-enterprise-ltd-vs-sujyoti-developers-pvt-ltd-a9e567cf

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Assets Care and Reconstruction Enterprise Ltd. (Financial Creditor) against Sujyoti Developers Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP) due to a default amount of Rs. 945,58,10,983/- as of 31.01.2023, along with interest. The debt arises from corporate guarantees executed by the Corporate Debtor for facilities availed by Nirmal Lifestyle Limited (NLL) and Nirmal Lifestyle Holding Private Limited (NLHPL). The Financial Creditor claims that defaults occurred under these facilities, leading to the invocation of guarantees and subsequent assignment of debts to them. The Corporate Debtor has contested the petition,

…

## Facts

Assets Care and Reconstruction Enterprise Ltd. filed a petition against Sujyoti Developers Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for a default of Rs. 945,58,10,983/- as of January 31, 2023. The debt stems from corporate guarantees provided by Sujyoti Developers for loans obtained by Nirmal Lifestyle Limited (NLL) and Nirmal Lifestyle Holding Private Limited (NLHPL) from Altico Capital India Limited. These loans included NLL Debentures (Rs. 300 crores), NLL Loan Facility (Rs. 112 crores), and NLHPL Loan Facility (Rs. 128 crores). NLL defaulted on its obligations, leading to the invocation of the guarantees in November 2019. Subsequently, an Assignment Agreement dated March 4, 2021, transferred the debts to Assets

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the IBC provides a statutory right to a Financial Creditor to initiate

…

**Reasoning:** The NCLT found that the Financial Creditor successfully established the existence of debt

…

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

…

**Application:** The Financial Creditor demonstrated that Sujyoti Developers Pvt. Ltd. had

…

## Parties

- **Judges:** Sushil Mahadeorao…; Charanjeet Singh…
- **Appellants:** Assets Care &…
- **Respondents:** Sujyoti Developers…

## Timeline

- **2016-09-23 — Debenture Tru…**: Nirmal Lifestyle Limited ('NLL') & IDBI Trusteeship Services Ltd executed a Debenture…
- **2016-09-26 — Disbursa…**: Rs. 2,38,00,00,000/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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-division-bench-court-i-chenn/assets-care-and-reconstruction-enterprise-ltd-vs-sujyoti-developers-pvt-ltd-a9e567cf