# In the matter of Daffodil Shelters Private Limited TA (IBC)-62(PB)-2022

> NCLT judgment dated 2023-01-12. Citation: TCN-2023-NCLT-05086. The case involves an application filed by M/s Piramal Capital and Housing Finance Limited…

- **Court:** NCLT
- **Order date:** 12 Jan 2023
- **Citation:** TCN-2023-NCLT-05086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/daffodil-shelters-private-limited-ta-ibc-62pb-2022-654ce906

## Summary

### Background

The case involves an application filed by M/s Piramal Capital and Housing Finance Limited (formerly known as Devan Housing Finance Corporation Limited) against M/s Daffodil Shelters Private Limited under Rule 16(d) of the NCLT Rules, 2016. The applicant sought reliefs including allowing the present petition, issuing directions for the transfer of C.P.(IB).No 108(CHE) of 2022 from NCLT BENCH-II to NCLT BENCH-I of the Hon'ble Tribunal at Chennai, and passing any other orders deemed fit. The applicant had sanctioned a loan to the respondent and 18 other borrowers, who jointly executed a loan agreement. The borrowers defaulted on repayments, leading to their account being declared a Non-Performing Asset (NPA). The applicant filed 19 petitions to initiate CIRP proceedings

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## Facts

M/s Piramal Capital and Housing Finance Limited (formerly Devan Housing Finance Corporation Limited) filed an application against M/s Daffodil Shelters Private Limited under NCLT rules. Piramal Capital had sanctioned a loan to Daffodil Shelters and 18 other borrowers. The loan was sanctioned via a letter DHFL/2014-15/PF/PB/921 dated 2014-09-26. The borrowers jointly executed a loan agreement on 2014-09-26. The financial creditor sanctioned Rs 20,00,00,000 and disbursed Rs 19,80,00,000 on 2014-09-30. The borrowers defaulted in 2015, and the account was declared NPA on 2015-06-30. Piramal Capital filed 19 petitions to initiate CIRP. The corporate debtor and borrowers deposited original title documents at Piramal Capital's Chennai branch to create an equitable mortgage.

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## Issues and analysis

### Issue 1: Whether the transfer application bearing no. TA (IBC)-62(PB)/2022 should be allowed and …

**Ratio:** In the interest of justice and for better adjudication, matters that are connected and

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**Reasoning:** The court reasoned that consolidating the matters would prevent conflicting orders and

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**Interpretation:** The interpretation emphasizes the importance of judicial efficiency and

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

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## Parties

- **Judges:** Ramalingam…
- **Appellants:** M/s. Piramal…
- **Respondents:** M/s DAFFODIL…

## Timeline

- **2014-09-26 — Loan Sanction…**: Applicant sanctioned a loan vide sanction letter DHFL/2014-15/PF/PB/921 to the Respondent…
- **2014-09-26 — Loan Agre…**: Borrowers jointly executed the Loan…

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