# In the matter of Mahavir Roads and Infrastructure Private Limited

> NCLT judgment dated 2023-11-01. Citation: TCN-2023-NCLT-00898. Suraksha Realty Limited, the Applicant, filed IA 318/2021 on 2021-02-11 seeking directions…

- **Court:** NCLT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLT-00898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mahavir-roads-and-infrastructure-private-limited-0938e1f6

## Summary

### Background

Suraksha Realty Limited, the Applicant, filed IA 318/2021 on 2021-02-11 seeking directions against Ankur Kumar, the Resolution Professional, in the Corporate Insolvency Resolution Process (CIRP) of Mahavir Roads & Infrastructure Pvt. Ltd., the Corporate Debtor. The Applicant sought the admission of its entire claim of Rs 109,63,47,940, reconstitution of the Committee of Creditors (CoC) to grant the Applicant voting share proportionate to its claim, recognition as a secured creditor, and a restraint on the Respondent from conducting further CoC meetings. The Applicant claimed to be a financial creditor based on a loan agreement and subsequent modifications, where the Corporate Debtor had allegedly created an oral mortgage by depositing title deeds of land as

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## Facts

Suraksha Realty Limited (Applicant) granted a loan of Rs. 60,00,00,000 to Mahavir Roads & Infrastructure Pvt. Ltd. (Corporate Debtor) on 2014-12-03. The loan agreement stipulated a mortgage over land owned by the Corporate Debtor. The Corporate Debtor deposited title documents with the Applicant, allegedly creating an oral mortgage. On 2015-02-18, a supplementary loan agreement was executed. The Corporate Debtor defaulted on repayment, and the issued cheques were dishonored. A modified loan agreement was entered on 2015-12-15, acknowledging outstanding dues of Rs. 60,80,00,000. An addendum to the modified loan agreement was executed on 2016-02-09, modifying repayment terms. The Applicant filed a complaint against the Corporate Debtor, which was later withdrawn

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## Issues and analysis

### Issue 1: Whether the Applicant, Suraksha Realty Limited, should be considered a secured creditor in the CIRP …

**Ratio:** The legal principle is that registration of a charge with the Registrar of Companies is

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**Reasoning:** The Tribunal reasoned that while the deposit of title deeds might create a mortgage, the

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**Interpretation:** The interpretation is that the Companies Act places a responsibility on the

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**Application:** The Tribunal applied this principle by directing the Applicant to seek

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Suraksha Realty…
- **Respondents:** Mahavir Roads and…; Ankur K…

## Timeline

- **2014-12-03 — Loan Agre…**: Applicant granted a loan of Rs.…
- **2015-02-18 — Supplementary Loan…**: Corporate Debtor and Applicant entered…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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