# In the matter of G.C. Property Private Limited C.P. No. 2312-IBC-MB-2019

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03801. IL & FS Financial Services Limited, the Financial Creditor, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gc-property-private-limited-cp-no-2312-ibc-mb-2019-1c5c47fa

## Summary

### Background

IL & FS Financial Services Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against G.C. Property Private Limited, the Corporate Debtor, due to an unresolved financial debt of Rs. 36,36,16,503/-. The Financial Creditor had extended a loan facility to Anupama Agarwal, with the Corporate Debtor acting as a guarantor. The Corporate Debtor opposed the admission of the petition, arguing that it was neither a borrower nor a guarantor and that the loan was essentially for Vadraj Cement Ltd., where the Financial Creditor held a majority stake.

## Facts

IL & FS Financial Services Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against G.C. Property Private Limited (Corporate Debtor) due to an unresolved financial debt of Rs. 36,36,16,503/-. The Financial Creditor had extended a rupee term loan facility up to Rs. 30,00,00,000/- to Anupama Agarwal (Borrower) vide offer letter dated 27.12.2017. A loan agreement was executed between the Financial Creditor and the Borrower, and Rs. 29,00,00,000/- was disbursed. The Corporate Debtor executed a corporate guarantee for the loan facility. Mr. Rishi Agarwal provided a personal guarantee, and a memorandum of entry recording mortgage of immovable property of

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## Issues and analysis

### Issue 1: Whether the letter of guarantee executed by the Corporate Debtor is insufficiently stamped and …

**Ratio:** The issue of stamp duty is not legally sustainable and is liable to be rejected based on

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**Reasoning:** The NCLT referred to a judgment by the Division Bench of the Hon'ble Bombay High Court,

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**Interpretation:** The interpretation is that the issue of stamp duty is not a primary concern in

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**Application:** The NCLT applied this reasoning to reject the Corporate Debtor's plea regarding

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** G.C. Property…

## Timeline

- **2017-12-27 — Offer Le…**: The Applicant vide it offer letter dated 27.12.2017 offered to extend to Anupama Agarwal…
- **2018-06-28 — Default in…**: Default committed by the borrower in relation to payment of interest due on Jun 28, 2018,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 176 — Final dividend](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-176)

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