# In the matter of E Complex Private Limited IA-569(MP)2021 in CP(IB)-563-9-AHM-2018]

> NCLT judgment dated 2023-10-18. Citation: TCN-2023-NCLT-01136. Reliance Capital Ltd, an NBFC and related party to the corporate debtor E-Complex Pvt Ltd,…

- **Court:** NCLT
- **Order date:** 18 Oct 2023
- **Citation:** TCN-2023-NCLT-01136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/e-complex-private-limited-ia-569mp2021-in-cpib-563-9-ahm-2018-6a13b634

## Summary

### Background

Reliance Capital Ltd, an NBFC and related party to the corporate debtor E-Complex Pvt Ltd, filed an application against the rejection of its claim of financial debt amounting to Rs 82,70,85,616/- (principal Rs 57,00,00,000/- plus interest) by the Resolution Professional (RP). The applicant had sanctioned a loan of Rs 57,00,00,000/- under an Inter Corporate Deposit Facility agreement dated 02.05.2017, repayable with interest. The applicant filed a claim on 18.02.2021, following the initiation of Corporate Insolvency Resolution Professional (CIRP) against E-Complex Pvt Ltd, ordered on 09.12.2020. The RP rejected the claim on 03.07.2021, stating that the corporate debtor transferred the ICD facility amount to its group companies immediately after disbursement.

## Facts

Reliance Capital Ltd, an NBFC, sanctioned a loan of Rs 57,00,00,000/- to E-Complex Pvt Ltd under an Inter Corporate Deposit (ICD) Facility agreement dated 02.05.2017. The loan was repayable with interest. E-Complex Pvt Ltd faced Corporate Insolvency Resolution Professional (CIRP) proceedings initiated on 09.12.2020. Reliance Capital Ltd filed a claim for Rs 82,70,85,616/- (principal plus interest) with the Resolution Professional (RP) on 18.02.2021. The RP rejected the claim on 03.07.2021 because immediately after receiving the ICD amount, E-Complex Pvt Ltd transferred Rs 55,00,00,000/- to Reliance Housing Finance Ltd and Rs 1,50,00,000/- to REDSL. The RP viewed these transactions as circular, involving rotation of money among group companies. Reliance Capital Ltd then

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting the claim of Reliance Capital …

**Ratio:** The legal principle applied is that the RP has a duty to verify the genuineness of claims

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**Reasoning:** The court reasoned that the RP had conducted due verification and sought necessary

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**Interpretation:** The interpretation is that the RP has the authority and responsibility to

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

- **Judges:** SHAMMI…; KAUSHALENDRA…
- **Appellants:** Reliance Capital…
- **Respondents:** E-Complex Private…; Chandra Prakash…

## Timeline

- **2017-05-02 — ICD Facility A…**: Reliance Capital Ltd sanctioned a loan of Rs 57,00,00,000/- to E-Complex Pvt Ltd under an…
- **2020-12-09 — CIRP Init…**: Corporate Insolvency Resolution Professional…

## 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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