# In the matter of Deserve Exim Private Limited I.A. No. 609 of 2022 in CP (IB) No. 1191-(MB)-2021

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04642. The case involves an application filed by Deserve Exim Private Limited, the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/deserve-exim-private-limited-ia-no-609-of-2022-in-cp-ib-no-1191-mb-2021-94ca7a80

## Summary

### Background

The case involves an application filed by Deserve Exim Private Limited, the Corporate Debtor, seeking the dismissal of a petition filed by YES Bank Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in repayment of an aggregate amount of Rs. 888,94,94,865/-. The Corporate Debtor argued that the petition is barred under Section 10A of the Code, as the default occurred during the period when Section 10A was in effect, which provided a moratorium on the initiation of CIRP for defaults arising on or after March 25, 2020, for a specified period.

## Facts

The Financial Creditor, YES Bank Limited, advanced Term Loans to Radius & Deserve Builders LLP and Raghuleela Builders Pvt Ltd, amounting to Rs. 800,00,00,000/-. The Corporate Debtor, Deserve Exim Private Limited, executed two Deeds of Guarantee dated June 2, 2015, guaranteeing the repayment of the loans. The borrowers defaulted on repayments on August 1, 2019, and February 1, 2019, respectively. The Financial Creditor declared the accounts as Non-Performing Assets (NPA) on October 31, 2019, and May 2, 2019, respectively. The Financial Creditor invoked the Guarantees on August 7, 2020, and June 26, 2020. The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, on November 24, 2021, seeking to initiate CIRP against the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is barred under Section 10A of the Insolvency …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, provides a moratorium on the

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**Reasoning:** The court reasoned that the date of default in respect of the Corporate Guarantor should

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**Interpretation:** Section 10A is interpreted to provide relief to corporate debtors from

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**Application:** In this case, the court applied Section 10A to the facts and found that the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Respondents:** Deserve Exim…; Yes Bank L…

## Timeline

- **2015-06-02 — Execution of Deeds of…**: The Corporate Debtor, Deserve Exim Private Limited, executed two Deeds of Guarantee…
- **2019-02-01 — Default by Bo…**: Raghuleela Builders Pvt Ltd…

## 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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