# In the matter of Grand Vacations Pvt. Ltd. C.P.(IB)-754(MB)-2021

> NCLT judgment dated 2022-04-12. Citation: TCN-2022-NCLT-03270. The case involves a petition filed by Shapoorji Pallonji Development Managers Pvt. Ltd. (the…

- **Court:** NCLT
- **Order date:** 12 Apr 2022
- **Citation:** TCN-2022-NCLT-03270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/grand-vacations-pvt-ltd-cpib-754mb-2021-1a00495f

## Summary

### Background

The case involves a petition filed by Shapoorji Pallonji Development Managers Pvt. Ltd. (the Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Grand Vacations Pvt. Ltd. (the Corporate Debtor). The Financial Creditor extended a loan of Rs.28.50 crores to the Corporate Debtor, which was disbursed on 29.03.2019. The Corporate Debtor defaulted on 26.09.2019.

## Facts

Shapoorji Pallonji Development Managers Pvt. Ltd. (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Grand Vacations Pvt. Ltd. (Corporate Debtor). The Financial Creditor had extended a loan of Rs. 28.50 crores to the Corporate Debtor on 29.03.2019, and the Corporate Debtor defaulted on 26.09.2019. The Corporate Debtor did not appear for the hearings despite being served a court notice and newspaper publications. The Financial Creditor submitted documents, including a facility agreement, deed of hypothecation, irrevocable power of attorney, deed of corporate guarantee, and indemnity-cum-undertaking. The Corporate Debtor neither filed any reply to the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court was satisfied that the Financial Creditor had submitted sufficient evidence to

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The court applied Section 7 to the facts of the case, finding that the

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## Parties

- **Judges:** KISHORE VEMULAPALL…; RAJESH S…
- **Appellants:** Shapoorji…
- **Respondents:** Grand Vacations…

## Timeline

- **2019-03-29 — Loan Disbur…**: The Financial Creditor extended a loan of Rs.28.50 crores to the Corporate Debtor, which…
- **2019-09-26 — Date of D…**: The Corporate Debtor defaulted on its payment…

## 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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