# In the matter of D B Realty Limited IA 2682-2022 in CP (IB) 265-MB-2020

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00038. The case involves an Interlocutory Application (IA 2682/2022) filed by D B Realty Limited…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00038
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/d-b-realty-limited-ia-2682-2022-in-cp-ib-265-mb-2020-cfe23cfb

## Summary

### Background

The case involves an Interlocutory Application (IA 2682/2022) filed by D B Realty Limited against Reliance Commercial Finance Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016. The application seeks to implead Authum Investment and Infrastructure Limited in place of the Original Petitioner, Reliance Commercial Finance Limited, due to an approved resolution plan.

## Facts

Reliance Capital Limited (RCL) defaulted on its payment and debt servicing obligations. The Reserve Bank of India (RBI) superseded the Board of Directors of RCL on November 29, 2021. The Tribunal admitted a petition filed by the RBI on December 6, 2021, and appointed an administrator for RCL. A resolution plan was approved in favor of Authum Investment and Infrastructure Limited by the Supreme Court on August 30, 2022. D B Realty Limited, the applicant, had availed facilities as a corporate loan to develop a real estate project. The applicant expressed willingness to pay Rs.142,94,00,000/- towards repayment of the facilities. The applicant sent letters to the Administrator, RBI Governor, and Secretary of Finance expressing their willingness to pay. The members of the

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## Issues and analysis

### Issue 1: Whether Authum Investment and Infrastructure Limited should be impleaded in place of the Original …

**Ratio:** When a resolution plan is approved for a company, the resolution applicant steps into the

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**Reasoning:** The Tribunal considered the submissions of both sides and the totality of the

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**Interpretation:** The legal principle is that once a resolution plan is approved, the resolution

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**Application:** In this case, since Authum Investment and Infrastructure Limited had an

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## Parties

- **Judges:** P.N. Deshmukh…; SH. SHYAM BABU…
- **Respondents:** D B Realty…; DB Realty L…; +1 more

## Timeline

- **2016-12-01 — Credit Facility…**: Reliance Capital Limited sanctioned a credit facility of Rs.2,00,00,000/- to the Original…
- **2016-12-09 — Scheme of Arrangement…**: The Hon'ble Bombay High Court sanctioned the Scheme of Arrangement, transferring all…

## 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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