# In the matter of Lakshya Forrum for Competition Private Limited CP (IB) No.1047-MB-IV-2021

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04978. Assets Care and Reconstruction Enterprise Limited, the Financial Creditor, filed a petition…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04978
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lakshya-forrum-for-competition-private-limited-cp-ib-no1047-mb-iv-2021-5b36d3e6

## Summary

### Background

Assets Care and Reconstruction Enterprise Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Lakshya Forrum for Competition Private Limited, the Corporate Debtor. The Corporate Debtor, along with its holding company M/s MT Educare Limited, had been sanctioned INR 110,00,00,000 under a common facility agreement dated 2017-04-12 by M/s Xander Finance Private Limited (Original Lender), out of which the Corporate Debtor availed INR 33.25 Crores. The date of default was stated as 2021-03-01, with a total default amount of Rs.13,87,59,120/- as of 2021-10-14. The Corporate Debtor objected to the petition, stating that the demand notice was

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## Facts

Assets Care and Reconstruction Enterprise Limited (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, to initiate CIRP against Lakshya Forrum for Competition Private Limited (Corporate Debtor). The Corporate Debtor, along with its holding company, had been sanctioned INR 110,00,00,000 under a common facility agreement dated 2017-04-12. The Corporate Debtor availed INR 33.25 Crores. The date of default was 2021-03-01, with a total default amount of Rs.13,87,59,120/- as of 2021-10-14. The Financial Creditor's application stated the date of default as 2021-03-01, confirmed by information utility records. The Corporate Debtor objected, stating the demand notice was issued during the moratorium period and challenged the petitioner's locus standi. The

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## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP is maintainable given the default date of …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, explicitly bars the filing of an

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**Reasoning:** The court reasoned that the date of default, as stated by the Financial Creditor and

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**Interpretation:** Section 10A was interpreted as a legislative intervention to prevent the

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**Application:** The court applied Section 10A to the facts of the case. Since the default

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Assets Care &…
- **Respondents:** Lakshya Forrum…
- **Advocates:** Dhiraj M…; Rohit G…; +3 more

## Timeline

- **2017-04-12 — Facility Ag…**: INR 110,00,00,000 sanctioned under a common facility agreement by M/s Xander Finance…
- **2021-03-01 — Date of D…**: Date of default as per…

## 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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