# In the matter of Greenlace Builders and Developers Private Limited

> NCLT judgment dated 2024-02-16. Citation: TCN-2024-NCLT-02540. The case involves an application filed by Piramal Trusteeship Services Private Limited, the…

- **Court:** NCLT
- **Order date:** 16 Feb 2024
- **Citation:** TCN-2024-NCLT-02540
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/greenlace-builders-and-developers-private-limited-05834296

## Summary

### Background

The case involves an application filed by Piramal Trusteeship Services Private Limited, the security trustee of Piramal Capital and Housing Finance Limited (PCHFL), under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Greenlace Builders and Developers Private Limited. PCHFL had sanctioned a Term Loan of Rs. 55 crores to Asten Realtors Private Limited, with Greenlace Builders acting as a corporate guarantor. Asten Realtors was admitted to CIRP on 2023-01-25. The Financial Creditor invoked the corporate guarantee on the Corporate Debtor due to the default by the principal borrower.

## Facts

Piramal Trusteeship Services Private Limited, acting as the security trustee for Piramal Capital and Housing Finance Limited (PCHFL), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Greenlace Builders and Developers Private Limited, the Corporate Debtor. PCHFL had sanctioned a Term Loan of Rs. 55 crores to Asten Realtors Private Limited, the principal borrower, on 2019-01-22. Greenlace Builders and Developers Private Limited acted as a corporate guarantor for the loan. Asten Realtors Private Limited was admitted to CIRP on 2023-01-25. Due to the default by the principal borrower, PCHFL invoked the corporate guarantee against Greenlace Builders and Developers Private

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## Issues and analysis

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

**Ratio:** The ratio is based on Section 7 of the Insolvency and Bankruptcy Code, 2016, which allows

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**Reasoning:** The Tribunal reasoned that the debt amount exceeded the threshold limit stipulated under

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**Interpretation:** The interpretation involves understanding the scope and applicability of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** Piramal Trusteeshi…
- **Respondents:** GREENLACE…
- **Advocates:** Nausher…; Lakshmi…

## Timeline

- **2018-11-19 — Sanction…**: Piramal Capital and Housing Finance Limited sanctioned a loan to Asten Realtors Private…
- **2019-01-22 — Loan Agre…**: Loan agreement executed…

## 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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