# In the matter of Guruashish Constructions Private Limited

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02047. The case involves an application by IL&FS Financial Services Limited, the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02047
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/guruashish-constructions-private-limited-651d34c1

## Summary

### Background

The case involves an application by IL&FS Financial Services Limited, the Financial Creditor, against Rajendra K. Bhuta, the Liquidator of Guruashish Constructions Private Limited, the Corporate Debtor. The Financial Creditor sought the Tribunal's intervention to set aside the Liquidator's decision dated 18.11.2020, which partially rejected their claim. The Corporate Debtor was admitted into CIRP on 24.07.2017, and subsequently liquidated on 04.09.2020, with the Respondent appointed as the Liquidator. The Applicant had entered into a loan agreement with the Corporate Debtor on 17.11.2011, granting a loan of Rs. 215,00,00,000/-. The Applicant also entered into a loan agreement dated 30.06.2015 with Serveall Construction Private Limited, a group company of the

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## Facts

IL&FS Financial Services Limited (Applicant) filed a claim against Guruashish Constructions Private Limited (Corporate Debtor) which is under liquidation. The Corporate Debtor was admitted into CIRP on 24.07.2017 and subsequently liquidated on 04.09.2020. The Applicant had extended loans to the Corporate Debtor and its group company, Serveall Construction Private Limited, under loan agreements dated 17.11.2011 and 30.06.2015 respectively. The Corporate Debtor also provided a corporate guarantee for the loan to Serveall. The Applicant filed proof of claims for both loans. The Liquidator sought clarification on the interest rates. The Liquidator partially rejected a portion of the claim amounting to Rs. 3,38,67,858/- from the total claim of Rs. 10,86,23,598/-,

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in rejecting the claim for delayed payment interest amounting …

**Ratio:** The ratio is based on the interpretation of contractual clauses, specifically clauses 29

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**Reasoning:** The Tribunal reasoned that the Liquidator had erroneously rejected the claim for delayed

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**Interpretation:** The interpretation centers on the enforceability of contractual clauses related

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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:** H.V. Subb…; Anu Jagmoha…
- **Appellants:** IL & FS Financial…
- **Respondents:** Guruashish…; Rajendra K.…
- **Advocates:** Luckyraj In…; Ranjit S…; +1 more

## Timeline

- **2011-11-17 — Loan Agre…**: Applicant entered into a loan agreement with the…
- **2015-06-30 — Loan Agreement with…**: Applicant entered into a loan agreement with Serveall Construction Private Limited for…

## 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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