# In the matter of Indiabulls Housing Finance Ltd Vs. Sanjay Chhabria, CP (IB) No. 59/MB/2021

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-01606. The case involves a Company Petition filed by Indiabulls Housing Finance Limited under Section…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-01606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indiabulls-housing-finance-ltd-vs-sanjay-chhabria-cp-ebf6fddc

## Summary

### Background

The case involves a Company Petition filed by Indiabulls Housing Finance Limited under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019, seeking to initiate Individual Insolvency Resolution Process (IRP) against Mr. Sanjay Chhabria, the Personal Guarantor. Raghuleela Infraventures Private Limited ("Corporate Debtor") approached Indiabulls Housing Finance Limited (“IHFL/Financial Creditor") seeking total loan facilities for an amount of INR 283 Crores. The Financial Creditor sanctioned the loans to the Corporate Debtor.

## Facts

Indiabulls Housing Finance Limited filed a Company Petition against Mr. Sanjay Chhabria, who is the personal guarantor to the applicant, under Section 95 of the Insolvency and Bankruptcy Code, 2016. The petition seeks to initiate Individual Insolvency Resolution Process (IRP) against Mr. Chhabria. The applicant claims a total outstanding amount of Rs. 146,68,83,834/-. Raghuleela Infraventures Private Limited ("Corporate Debtor") had approached Indiabulls Housing Finance Limited (“IHFL/Financial Creditor") seeking loan facilities. The applicant sanctioned two loans: Loan Amount No. S000239814, dated March 14, 2017, for INR 150,00,00,000/-, and Loan Account No. S000239815, dated March 14, 2017, for INR 133,00,00,000/-. A Deed of Personal Guarantee was

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## Issues and analysis

### Issue 1: Whether the proceedings in C.P (IB) No. 59/MB/2021 before the Adjudicating Authority should be …

**Ratio:** The ratio is based on the interpretation of Section 101 of the Code, which stipulates

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**Reasoning:** The court reasoned that a conjoint and careful reading of section 101 of the Code

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**Interpretation:** The interpretation of Section 101 emphasizes the protective nature of the

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**Application:** Given the facts and circumstances, the court applied the ratio by ordering that

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Indiabulls…
- **Respondents:** Raghuleela…; Sanjay Ch…

## Timeline

- **2017-03-14 — Loan Agreeme…**: Loan Agreement dated March 14, 2017 for an amount of INR 150,00,00,000/- (Loan 1) and INR…
- **2017-03-07 — Loan Sancti…**: Loans were sanctioned vide…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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