# In the matter of Camel Shelters Private Limited CP(IB)-126 (CHE)2022

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03969. The case involves an application filed by Piramal Capital & Housing Finance Limited (Financial…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03969
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/camel-shelters-private-limited-cpib-126-che2022-a78b1c6f

## Summary

### Background

The case involves an application filed by Piramal Capital & Housing Finance Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Camel Shelters Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims a debt of Rs. 75,00,52,572/-. The Corporate Debtor, along with other co-borrowers, had availed a loan facility from the Financial Creditor, and a default occurred. The Financial Creditor seeks to initiate CIRP due to the Corporate Debtor's failure to repay the outstanding loan amount.

## Facts

Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Camel Shelters Private Limited (Corporate Debtor). The application was filed on 26.05.2022. The Financial Creditor claimed a total outstanding debt of Rs. 75,00,52,572/- as of 31.03.2022, comprising principal (Rs. 17,79,06,000/-) and interest (Rs. 57,21,26,472/-). The Corporate Debtor, along with 19 other associate companies, had requested financial assistance towards a mortgage loan. The Financial Creditor sanctioned a loan of Rs. 20,00,00,000/- jointly to the Corporate Debtor and co-borrowers on 26.09.2014. The loan was secured by a joint mortgage of

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC …

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

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**Reasoning:** The Tribunal found that the Financial Creditor had demonstrated the existence of a

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the CIRP

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**Application:** The Tribunal applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** Camel Shelters…

## Timeline

- **2014-09-26 — Sanction…**: Financial Creditor sanctioned a loan of Rs. 20,00,00,000/- jointly to Corporate Debtor…
- **2015-06-30 — Account Classified as…**: The loan account was classified…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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