# In the matter of ATS Housing Pvt. Ltd. (IB)-718(ND)2021

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02581. The case involves an application filed by Financial Creditors (Pawan Kumar Gupta and Kiran…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ats-housing-pvt-ltd-ib-718nd2021-5f21833c

## Summary

### Background

The case involves an application filed by Financial Creditors (Pawan Kumar Gupta and Kiran Gupta) under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s ATS Housing Pvt. Ltd. The Financial Creditors and the Corporate Debtor entered into a loan agreement on 21.01.2016, where the creditors agreed to provide a loan of Rs. 1,00,00,000/- to the debtor for 12 months at an interest rate of 18% p.a. The loan was disbursed through two cheques. The loan agreement was renewed through supplementary agreements, with varying interest rates and tenures. The corporate debtor issued two cheques dated 21.07.2021 for Rs. 50,00,000 each, which were dishonored on 13.10.2021 due to

…

## Facts

On 21.01.2016, Financial Creditors (Pawan Kumar Gupta and Kiran Gupta) and ATS Housing Pvt. Ltd. (Corporate Debtor) entered into a loan agreement for Rs. 1,00,00,000/- at 18% p.a. interest, repayable in 12 months. The loan was disbursed via two cheques on 16.01.2016. The Corporate Debtor created a lien on two residential units in the 'ATS Pristine' project in Noida as security. The loan agreement was renewed via supplementary agreements with varying interest rates and tenures, the last of which expired on 21.07.2020. The Corporate Debtor issued a demand promissory note dated 21.01.2016, acknowledging the loan. The Corporate Debtor requested the Financial Creditors not to encash post-dated cheques due to a funds shortage. The Corporate Debtor issued two cheques dated

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency & Bankruptcy Code, 2016 is …

**Ratio:** The ratio is based on the fulfillment of the requirements under Section 7 of the IBC,

…

**Reasoning:** The court reasoned that the Corporate Debtor had issued cheques on 21.07.2021, which were

…

**Interpretation:** The interpretation involves understanding the requirements of Section 7 of the

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** BACHU VENKAT…; Virendra Kumar…
- **Appellants:** Pawan Kumar…
- **Respondents:** ATS Housing Pvt.…
- **Advocates:** Aditi S…; Rajul Shriv…; +2 more

## Timeline

- **2016-01-21 — Loan Agre…**: Financial Creditors and Corporate Debtor entered into a loan agreement for Rs.…
- **2016-01-16 — Loan Disbur…**: Loan of Rs. 1,00,00,000/-…

## 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)

---

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/ats-housing-pvt-ltd-ib-718nd2021-5f21833c