# 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-01126. 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-01126
- **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-2018-736fffe5

## 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 by the Resolution Professional (RP). The claim comprised a principal amount of Rs 57,00,00,000 plus interest thereon, stemming from an Inter Corporate Deposit (ICD) facility agreement dated 2017-05-02. The RP initiated Corporate Insolvency Resolution Professional (CIRP) against E-Complex Pvt Ltd following an order dated 2020-12-09. The RP rejected Reliance Capital's claim, citing concerns about the genuineness of the transaction.

## 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 2017-05-02. The facility was repayable with interest. Following the initiation of Corporate Insolvency Resolution Professional (CIRP) against E-Complex Pvt Ltd on 2020-12-09, Reliance Capital filed a claim for Rs 82,70,85,616, including principal and interest, on 2021-02-18. The Resolution Professional (RP) rejected the claim, citing concerns about the genuineness of the transaction. The RP observed that 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, both group companies. The RP viewed these transfers as circular

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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 RP has a duty to verify the genuineness of claims submitted by creditors during the

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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 of the law allows the RP to scrutinize transactions to

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**Application:** In this case, the RP's observation of circular transactions, coupled with the

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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 (CIRP) was initiated against E-Complex Pvt…

## 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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