# In the matter of Duxton Hills Builder Pvt. Ltd.

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02187. This is an application filed by M/s. Arti Securities and Services Limited to initiate corporate…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02187
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/duxton-hills-builder-pvt-ltd-60984478

## Summary

### Background

This is an application filed by M/s. Arti Securities and Services Limited to initiate corporate insolvency resolution process ("CIRP") against M/s. Duxton Hills Builder Private Limited under Section 7 of the Insolvency and Bankruptcy Code 2016 ("the Code”) for the alleged default on the part of the Respondent in settling an amount of Rs. 1,07,18,335.81/- along with interest at the rate of 8.50% per annum as on 31.01.2023. The Applicant/ Financial Creditor entered into the Loan Facility Agreement dated 01.03.2022 with the Corporate Debtor for the disbursal of Loan wherein the Agreement stipulates all the necessary terms and conditions attached with the disbursal of Loan. The Applicant disbursed the amount of Rs.1,00,00,000/- to the Corporate Debtor upon

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## Facts

M/s. Arti Securities and Services Limited (the Applicant/Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Duxton Hills Builder Private Limited (the Respondent/Corporate Debtor). The application was based on the alleged default by the Respondent in settling an amount of Rs. 1,07,18,335.81/- along with interest at 8.50% per annum as on 31.01.2023. The Applicant and the Corporate Debtor entered into a Loan Facility Agreement dated 01.03.2022, wherein the Applicant agreed to disburse a loan to the Corporate Debtor. The Applicant disbursed Rs. 1,00,00,000/- to the Corporate Debtor, who became liable to pay interest at 8.50% per annum. The Corporate

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal considered the documents submitted by the Financial Creditor, which

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to ascertain and

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**Application:** The Tribunal found that the application was complete in all respects and that

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## Parties

- **Judges:** SHRI. BACHU…; SHRI. RAHUL…
- **Appellants:** M/s. Arti…
- **Respondents:** M/s. Duxton Hills…

## Timeline

- **2022-03-01 — Loan Facility…**: Applicant/ Financial Creditor entered into the Loan Facility Agreement with the Corporate…
- **2022-06-24 — Default L…**: Applicant issued a default letter to the Corporate Debtor duly demanding repayment of the…

## 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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