# In the matter of Maan Sarovar Properties Development Private Limited IA-756-CHE-2021 in IBA-706-2020

> NCLT judgment dated 2022-07-01. Citation: TCN-2022-NCLT-01943. Reliance Net Limited ('RNL'), the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 1 Jul 2022
- **Citation:** TCN-2022-NCLT-01943
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maan-sarovar-properties-development-private-limited-ia-756-che-2021-in-iba-706-2-995a9028

## Summary

### Background

Reliance Net Limited ('RNL'), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Maan Sarovar Properties Development Private Limited, the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default of Rs. 255,45,22,996/- as of 31.10.2020, along with interest. The Corporate Debtor disputed the debt, citing a pending civil suit in the Bombay High Court and arguing that the application was barred by limitation.

## Facts

Reliance Net Limited ('RNL') extended a financial assistance of Rs. 66,00,00,000/- to Maan Sarovar Properties Development Private Limited under a Loan Agreement dated 23.12.2009, with an interest rate of 20% p.a. The Corporate Debtor failed to repay the loan, leading to a Supplemental Loan Agreement dated 26.04.2013. Despite restructuring, the Corporate Debtor continued to default, and post-dated cheques were dishonored. A demand notice was issued on 09.10.2020. The Financial Creditor claimed Rs. 255,45,22,996/- as due as of 31.10.2020. The Corporate Debtor disputed the debt, citing a pending civil suit in the Bombay High Court for recovery of Rs. 118,76,64,226/- and argued that the application was barred by limitation. The Financial Creditor filed IA/756/CHE/2021 to

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of …

**Ratio:** The Hon'ble Supreme Court in ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED -VS- BISHAL

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**Reasoning:** The Tribunal relied on the Supreme Court's judgments to determine that the acknowledgment

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**Interpretation:** The interpretation of the Limitation Act in the context of the IBC, 2016, is

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**Application:** The Corporate Debtor's balance sheet reflected the debt, which was treated as

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** Reliance Net…
- **Respondents:** Maan Sarovar…

## Timeline

- **2009-12-23 — Original Loan…**: Reliance Net Limited sanctioned and disbursed a financial assistance of Rs.…
- **2013-04-26 — Supplemental Loan…**: A Supplemental Loan Agreement was entered into between the parties due to the Corporate…

## 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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