# In the matter of Guruchandrika Builders and Property Private Limited

> NCLT judgment dated 2024-07-31. Citation: TCN-2024-NCLT-00911. The case involves an application (IA(IBC)/209/KOB/2024) filed in a main Company Petition…

- **Court:** NCLT
- **Order date:** 31 Jul 2024
- **Citation:** TCN-2024-NCLT-00911
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/guruchandrika-builders-and-property-private-limited-2cc4f1ff

## Summary

### Background

The case involves an application (IA(IBC)/209/KOB/2024) filed in a main Company Petition (CP(IBC)/13/KOB/2024) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 32 and Rule 11 of the NCLT Rules, 2016. The application seeks to implead the 2nd Respondent (Chartered Accountant) as an Additional Respondent in the main Company Petition. The main Company Petition was filed against M/s Guruchandrika Builders & Property Private Limited under Section 7 of the IBC, 2016, as a co-applicant for a loan extended to M/s Jatayupara Tourism Private Limited. The Petitioner/Respondent no 1 proposed a One-Time Settlement (OTS) of Rs 3.8 Crores to the bank to settle outstanding credit facilities for M/s Jatayupara Tourism Private Limited, M/s

…

## Facts

M/s Guruchandrika Builders & Property (P) Limited is facing a Company Petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, initiated by Dhanlaxmi Bank Limited, a financial creditor, due to a loan default. The loan was extended to M/s Jatayupara Tourism Private Limited, with Guruchandrika Builders acting as a co-applicant. To resolve the outstanding debt, Dhanlaxmi Bank Limited proposed a One-Time Settlement (OTS) of Rs 3.8 Crores, which was accepted by the bank and forwarded to Mr. Shawn Jeff Christopher, a Chartered Accountant, for approval and fund release. The Chartered Accountant, however, did not approve the release of funds, stating that there were sufficient funds to settle the loans as per the OTS. Consequently, an application

…

## Issues and analysis

### Issue 1: Whether the Chartered Accountant should be impleaded as an additional respondent in the main …

**Ratio:** The Code does not expressly provide for impleading third parties in petitions filed under

…

**Reasoning:** The court reasoned that the primary objective of Section 7 proceedings is to assess the

…

**Interpretation:** Section 7 of the IBC is designed to be a swift mechanism for initiating the

…

**Application:** In this case, the Chartered Accountant's role is related to the proposed OTS,

…

## Parties

- **Judges:** RAVICHANDRAN…; T Krishna…
- **Appellants:** M/s. Guruchandrika…
- **Respondents:** Guruchandrika…; Dhanlaxmi Bank…

## Timeline

- **2023-01-02 — Supreme Court D…**: The Hon'ble Supreme Court issued directions in…
- **2023-01-13 — Tribunal…**: The Tribunal ordered the bank to forward the OTS proposal to the Chartered Accountant in…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/guruchandrika-builders-and-property-private-limited-2cc4f1ff