# In the matter of Mantri Developers Private Limited I.A. No. 158 of 2022 in CP (IB) No. 103-BB-2021

> NCLT judgment dated 2022-05-05. Citation: TCN-2022-NCLT-02874. KKR India Asset Finance Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 5 May 2022
- **Citation:** TCN-2022-NCLT-02874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mantri-developers-private-limited-ia-no-158-of-2022-in-cp-ib-no-103-bb-2021-1d36b6c2

## Summary

### Background

KKR India Asset Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Mantri Developers Private Limited (MDPL), the Corporate Debtor. The application was supported by an affidavit dated 31.08.2021. MDPL was incorporated on 06.12.1990. The Financial Creditor claimed a default amount of Rs. 101,20,25,989/- as of 31.08.2021. The Financial Creditor supported its claim with various documents, including a loan agreement, corporate guarantee, security trustee agreement, and default reports. SDPL availed a term loan facility of Rs. 145,00,00,000/- from the Financial Creditor, and MDPL executed a corporate guarantee in favor of the Security Trustee, IL&FS Trust Company Ltd.

## Facts

KKR India Asset Finance Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Mantri Developers Private Limited (MDPL), the Corporate Debtor. The Financial Creditor claimed a default amount of Rs. 101,20,25,989/- as of 31.08.2021. The Corporate Debtor, MDPL, was incorporated on 06.12.1990. Smarthomes Developers (India) Pvt Ltd. (SDPL) availed a term loan facility of Rs. 145,00,00,000/- from the Financial Creditor on 07.05.2016. MDPL executed a deed of corporate guarantee in favor of IL&FS Trust Company Ltd (Security Trustee) on 07.05.2016, guaranteeing payment of amounts due from SDPL. SDPL separately executed a deed of hypothecation dated

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## Issues and analysis

### Issue 1: Whether the C.P. was not supported by a valid Board Resolution of the Petitioner approving for …

**Ratio:** A valid Board Resolution is required for a

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**Reasoning:** The Petitioner filed Annexure 1 Board Resolution dated 27.08.2021, which showed that the

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**Interpretation:** The Board Resolution authorizes specific individuals to represent the company

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**Application:** The Adjudicating Authority examined the Board Resolution and found that it

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** KKR India Asset…
- **Respondents:** Mantri Developers…

## Timeline

- **2016-05-07 — SDPL availed t…**: SDPL availed a term loan facility of Rs.…
- **2016-05-07 — MDPL executed corporate…**: MDPL executed a deed of corporate guarantee…

## 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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