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

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02223. This case involves an application filed by M/s. Arti Securities and Services Limited (the…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/duxton-hills-builder-pvt-ltd-fab89df2

## Summary

### Background

This case involves an application filed by M/s. Arti Securities and Services Limited (the Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Duxton Hills Builder Private Limited (the Corporate Debtor). The application is based on the Corporate Debtor's alleged default in repaying a loan amount of Rs. 1,07,18,335.81 along with interest. The Financial Creditor and the Corporate Debtor entered into a Loan Facility Agreement on 01.03.2022, where the Financial Creditor disbursed Rs. 1,00,00,000 to the Corporate Debtor. The Corporate Debtor failed to adhere to the agreed EMI due dates, leading the Financial Creditor to issue a default letter on 24.06.2022. Despite

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## Facts

M/s. Arti Securities and Services Limited (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 (Corporate Debtor). The basis for the application is the Corporate Debtor's default in repaying a loan. A Loan Facility Agreement was entered into on 01.03.2022, where the Financial Creditor agreed to disburse Rs. 1,50,00,000, but only disbursed Rs. 1,00,00,000. The Corporate Debtor failed to adhere to the EMI due dates. A default letter was issued on 24.06.2022, demanding repayment of Rs. 1,00,00,000 plus accrued interest of Rs. 3,26,361.12. The Corporate Debtor requested three months' time to make complete payment due

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## Issues and analysis

### Issue 1: Whether the Applicant has established a financial debt and a default on the part of the Corporate …

**Ratio:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the existence of a

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

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**Interpretation:** The interpretation of Section 7 and Section 3(12) of the IBC is that if a

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**Application:** In this case, the Financial Creditor provided the Loan Facility Agreement,

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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…
- **2022-05-02 — First EMI D…**: The first EMI was due…

## 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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