# In the matter of Crystal Facilities Management Pvt. Ltd. IB-439-(ND)-2022

> NCLT judgment dated 2023-01-19. Citation: TCN-2023-NCLT-04995. The application was filed by Piramal Capital and Housing Finance Ltd. under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Jan 2023
- **Citation:** TCN-2023-NCLT-04995
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/crystal-facilities-management-pvt-ltd-ib-439-nd-2022-5fd0bf03

## Summary

### Background

The application was filed by Piramal Capital and Housing Finance Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) against Crystal Facilities Management Pvt. Ltd. The application was based on the alleged default by Crystal Facilities Management Pvt. Ltd. in settling an amount of Rs. 53,26,52,972 as on 11.05.2022. The applicant, Piramal Capital and Housing Finance Ltd., had extended a loan of Rs. 35 crores to Crystal Facilities Management Pvt. Ltd. pursuant to a loan agreement dated 29.03.2018. The corporate debtor had defaulted in repayment of the loan amount.

## Facts

Piramal Capital and Housing Finance Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Crystal Facilities Management Pvt. Ltd. (Corporate Debtor). The application was based on the Corporate Debtor's alleged default in settling an amount of Rs. 53,26,52,972 as of 11.05.2022. A loan agreement dated 29.03.2018 was entered into between the parties, where the Financial Creditor sanctioned a loan of Rs. 35 crores to the Corporate Debtor. The Corporate Debtor defaulted on its payment obligations under the loan agreement. The Financial Creditor issued a recall notice dated 22.02.2020 for an amount of Rs. 37,17,10,172. The Corporate Debtor's name was

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## Issues and analysis

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

**Ratio:** An application under Section 7 of the IBC is maintainable even if the Corporate Debtor's

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**Reasoning:** The Tribunal held that the application was maintainable despite the Corporate Debtor's

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**Interpretation:** The interpretation is that striking off the name of a company from the register

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**Application:** Even though Crystal Facilities Management Pvt. Ltd.'s name was struck off, the

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** Piramal Capital…
- **Respondents:** Crystal Facilites…

## Timeline

- **2018-03-28 — Sanction Lett…**: Sanction letter for the…
- **2018-03-29 — Loan Agreeme…**: Loan Agreement entered into between Crystal Facilities Management Pvt Ltd and Piramal…

## 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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