# In the matter of Asten Realtors Private Limited

> NCLT judgment dated 2023-12-05. Citation: TCN-2023-NCLT-00441. The case involves an application filed by Piramal Capital and Housing Finance Limited under…

- **Court:** NCLT
- **Order date:** 5 Dec 2023
- **Citation:** TCN-2023-NCLT-00441
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/asten-realtors-private-limited-b3e04c8e

## Summary

### Background

The case involves an application filed by Piramal Capital and Housing Finance Limited under Section 60(5)(b) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016, seeking various reliefs related to escrow accounts of Asten Realtors Private Limited, the Corporate Debtor. The applicant had provided a project loan to the Corporate Debtor, secured by an Escrow Agreement. The dispute arose when the Resolution Professional (Respondent No. 1) allegedly started withdrawing monies from the Cash Retention Account without the required permission and directed homebuyers to deposit receivables into RERA accounts instead of the Master Escrow Accounts, violating the Escrow Agreement. The applicant claims a lien on the escrow accounts and seeks to restrain the respondents from

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## Facts

Asten Realtors Private Limited (Corporate Debtor) requested a project loan of Rs. 55,00,00,000/- from Piramal Capital and Housing Finance Limited (Applicant) for its projects "Aurumwoods" and "Campus Court". The Applicant sanctioned the loan on 19th November 2018, and a loan agreement was executed on 22nd January 2019. A Deed of Hypothecation was executed on 15th February 2019, where the Corporate Debtor hypothecated, assigned, charged, and assured all amounts owing to and received by them in favor of the Applicant. To secure the loan, the Corporate Debtor agreed to enter into an Escrow Agreement for the deposit of all receivables. HDFC Bank (Respondent No. 2) agreed to hold and administer the monies deposited in the escrow accounts. The Corporate

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## Issues and analysis

### Issue 1: Whether the Resolution Professional can unilaterally alter the terms of the Escrow Agreement after …

**Ratio:** The Escrow Agreement, entered into before the commencement of CIRP, governs the operation

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**Reasoning:** The Tribunal considered that Sections 17 and 18 of the Code authorize the Resolution

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**Interpretation:** The Escrow Agreement's clauses regarding withdrawals and account operations are

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**Application:** The Resolution Professional cannot unilaterally alter the terms of the Escrow

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## Parties

- **Judges:** TMT. Justice…; Shri. Shyam Babu…
- **Appellants:** M/s. Piramal…
- **Respondents:** M/s. Asten…; RAJENDRA…

## Timeline

- **2018-11-19 — Loan San…**: Applicant sanctioned financial…
- **2019-01-22 — Loan Agreement…**: Loan agreement executed between…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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