# In the matter of Kandivli Balaji Investment Private Limited C.P.(IB) 712-MB-2022

> NCLT judgment dated 2022-11-10. Citation: TCN-2022-NCLT-00490. DMI Finance Private Limited filed a Company Petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Nov 2022
- **Citation:** TCN-2022-NCLT-00490
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kandivli-balaji-investment-private-limited-cpib-712-mb-2022-9c0eb821

## Summary

### Background

DMI Finance Private Limited filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Kandivli Balaji Investment Private Limited, the Corporate Debtor, due to an unresolved financial debt of Rs. 92,59,42,855/-. The Corporate Debtor had approached the Petitioner for availing fund-based financial services for General Corporate Purpose. A Loan Agreement dated 29.06.2017 was executed amongst the Corporate Debtor as 'Borrower', Prasanti Land Developer Private Limited as 'Corporate Guarantor', and the Petitioner as 'Lender'.

## Facts

DMI Finance Private Limited (Petitioner) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Kandivli Balaji Investment Private Limited (Corporate Debtor) due to a financial debt of Rs. 92,59,42,855/-. A Loan Agreement dated 29.06.2017 was executed between the parties, with the Corporate Debtor as 'Borrower' and the Petitioner as 'Lender'. The Petitioner had agreed to grant a term loan facility of Rs. 40,00,00,000/-. The financial debt was disbursed in various tranches from 12.07.2017 to 15.05.2018. Several agreements were entered to secure the obligation, including personal guarantees, a corporate guarantee, and a deed of pledge. The Corporate Debtor became irregular in payments and stopped paying installments. The Petitioner issued a

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor …

**Ratio:** The principle is that if a corporate debtor fails to make payments as per the loan

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**Reasoning:** The Tribunal noted that the Corporate Debtor had not made any payments towards the

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**Interpretation:** This confirms the interpretation that failure to repay debt as per the

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**Application:** The Corporate Debtor's failure to make payments and the absence of any dispute

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** DMI Finance…
- **Respondents:** Kandivli Balaji…

## Timeline

- **2017-06-29 — Loan Agre…**: A Loan Agreement was executed amongst Corporate Debtor as 'Borrower', Prasanti Land…
- **2017-07-12 — Disbursement of…**: Financial debt was disbursed by the Petitioner to the Corporate Debtor in various…

## 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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