# In the matter of Earthbuild Greencity Private Limited

> NCLT judgment dated 2023-07-11. Citation: TCN-2023-NCLT-02579. The case involves an application filed by Piramal Capital and Housing Finance Limited…

- **Court:** NCLT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLT-02579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earthbuild-greencity-private-limited-fec03954

## Summary

### Background

The case involves an application filed by Piramal Capital and Housing Finance Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Earthbuild Greencity Private Limited (Corporate Debtor). The Financial Creditor had sanctioned a loan of Rs. 35 Crore to Crystal Facilities Management Private Limited (CFMPL), of which Rs. 28 Crore 10 Lakh was disbursed. The Corporate Debtor acted as a guarantor for the loan. CFMPL has already been admitted to CIRP.

## Facts

Piramal Capital and Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Earthbuild Greencity Private Limited (Corporate Debtor). The Financial Creditor had sanctioned a loan of Rs. 35 Crore to Crystal Facilities Management Private Limited (CFMPL), with Rs. 28.10 Crore disbursed. Earthbuild Greencity Private Limited acted as a guarantor for the loan. CFMPL was already admitted to CIRP. The Corporate Debtor executed a guarantee deed on 29.03.2018. The date of default was alleged to be 15.04.2018. The Corporate Debtor was proceeded against ex-parte due to non-appearance. The application was filed on 27.05.2022.

## Issues and analysis

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

**Ratio:** The Hon'ble Supreme Court in Laxmi Pat Surana v/s Union of India and another, 2021 (8)

…

**Reasoning:** The Tribunal relied on the judgments of the Supreme Court and NCLAT, which clarified that

…

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

…

**Application:** In this case, Earthbuild Greencity Private Limited acted as a corporate

…

## Parties

- **Judges:** Sh. Ashok Kumar…; Ashish…
- **Respondents:** Earthbuild…; Kunal Ravi Singh,…

## Timeline

- **2018-03-29 — Guarantee Deed…**: The Corporate Debtor executed a…
- **2018-04-15 — Date of D…**: Alleged date of default by…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earthbuild-greencity-private-limited-fec03954