# In the matter of Guruashish Constructions Private Limited {IA No. 550-MB-C-I-2021 in C.P. (IB) No. 1061-MB-C-I-2017]

> NCLT judgment dated 2023-08-11. Citation: TCN-2023-NCLT-02071. The case involves an application (IA No. 550/MB/C-I/2021) filed in C.P (IB) No.…

- **Court:** NCLT
- **Order date:** 11 Aug 2023
- **Citation:** TCN-2023-NCLT-02071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/guruashish-constructions-private-limited-ia-no-550-mb-c-i-2021-in-cp-ib-no-1061-b01e973d

## Summary

### Background

The case involves an application (IA No. 550/MB/C-I/2021) filed in C.P (IB) No. 1061/MB/C-I/2017 under Section 42 of the Insolvency and Bankruptcy Code, 2016. Suraksha Asset Reconstruction Limited, the applicant, sought the acceptance of its claim as a financial creditor against Guruashish Constructions Private Limited, the corporate debtor, which was undergoing liquidation. The liquidator, Rajendra K. Bhuta, had rejected the applicant's claim, leading to the present application. The corporate debtor was admitted into CIRP on 2017-07-24, and subsequently, liquidation was ordered on 2020-09-04 due to the failure of the resolution plan.

## Facts

In 2015, Housing Development and Infrastructure Limited (HDIL) availed a term loan of Rs. 500 Crores from YES Bank Limited, secured by a registered mortgage, hypothecation of movable and current assets, and a corporate guarantee from Guruashish Constructions Private Limited. YES Bank Limited assigned the financial asset to Suraksha ARC 013 Trust, with Suraksha Asset Reconstruction Limited acting as the trustee. HDIL defaulted on the loan, leading Suraksha Asset Reconstruction Limited to file a claim in the CIRP of Guruashish Constructions Private Limited. The corporate debtor, Guruashish Constructions Private Limited, was admitted into CIRP on 2017-07-24, and subsequently, liquidation was ordered on 2020-09-04. The liquidator rejected Suraksha Asset Reconstruction

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## Issues and analysis

### Issue 1: Whether the claim of the Applicant can be rejected as a financial debt during the liquidation …

**Ratio:** The ratio is based on Section 5(8) of the Insolvency and Bankruptcy Code (IBC), which

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**Reasoning:** The tribunal reasoned that the liquidator failed to consider that the corporate debtor,

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**Interpretation:** The interpretation of Section 5(8) of the IBC, as clarified by the Supreme

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**Application:** In this case, Guruashish Constructions Private Limited provided a corporate

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## Parties

- **Judges:** H.V. Subb…; Anu Jagmoha…
- **Appellants:** Suraksha Asset…
- **Respondents:** Guruashish…; Rajendra K.…

## Timeline

- **2015-01-01 — Loan Availed…**: Housing Development and Infrastructure Limited (HDIL) availed a term loan of Rs. 500…
- **2015-07-29 — Corporate Gu…**: Corporate Guarantee dated 29th July, 2015 in favor of YES Bank Limited (the Assignor of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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