# In the matter of JLS Realty Private Limited

> NCLT judgment dated 2025-05-30. Citation: TCN-2025-NCLT-00033. Vijaypath Management Private Limited, the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 30 May 2025
- **Citation:** TCN-2025-NCLT-00033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jls-realty-private-limited-d90fc9ea

## Summary

### Background

Vijaypath Management Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against JLS Realty Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for financial assistance, which was sanctioned through two credit facilities. The credit facilities were merged, and the interest was charged on the whole sum. The facilities were renewed, and the Corporate Debtor issued post-dated cheques (PDCs). However, the Corporate Debtor failed to repay the debt, and a cheque was dishonored. The Financial Creditor issued a notice under Section 138(b) of the Negotiable Instruments Act, 1881, and filed an application

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## Facts

Vijaypath Management Private Limited (Financial Creditor) provided financial assistance to JLS Realty Private Limited (Corporate Debtor) through two credit facilities amounting to Rs. 35,00,000/- and Rs. 65,00,000/-, respectively. These facilities were disbursed on 04.04.2013 and 29.10.2013, with an interest rate of 12% p.a. The credit facilities were later merged, and the interest rate was changed to 16% p.a. The Corporate Debtor issued post-dated cheques (PDCs) for repayment. The last renewal of the facility was on 01.01.2021. A cheque bearing No. 001523 dated 01.01.2021, drawn on Bank of Baroda, Mumbai, for Rs. 1,00,00,000/- was presented for encashment on 26.03.2021 but was dishonored on 29.03.2021 with the endorsement 'Funds Insufficient'. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the Intervention Application filed by …

**Ratio:** Intervention by directors/ex-directors/shareholders of the corporate debtor is not

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**Reasoning:** The Tribunal relied on precedents from NCLAT, including Vikas Kumar Garg Vs. DMI Finance

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**Interpretation:** The legal principle is that during the pre-admission stage of a CIRP

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**Application:** The Tribunal applied this principle to the present case, noting that the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Moniveda Consultan…
- **Respondents:** JLS Realty…; Vijaypath…
- **Advocates:** Ashta…; Rohit M…; +7 more

## Timeline

- **2013-04-04 — Disbursement of First…**: Financial Creditor disbursed Rs.…
- **2013-10-29 — Disbursement of Second…**: Financial Creditor disbursed Rs.…

## 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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