# In the matter of Manyata Developers Pvt. Ltd.

> NCLT judgment dated 2023-09-27. Citation: TCN-2023-NCLT-01440. The case involves an application filed by Asset Reconstruction Company (India) Ltd. (ARCIL)…

- **Court:** NCLT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLT-01440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manyata-developers-pvt-ltd-701ed88a

## Summary

### Background

The case involves an application filed by Asset Reconstruction Company (India) Ltd. (ARCIL) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Manyata Developers Pvt. Ltd. ARCIL, as the financial creditor, claims that Manyata Developers defaulted on a debt of Rs. 10,85,79,39,222/- as of April 15, 2022. The debt arises from loan facilities originally provided by L&T Finance Limited (LTFL), L&T Housing Finance Limited (LTHFL), and L&T Infrastructure Finance Company Limited (LTIFCL) to Manyata Developers, which were subsequently assigned to ARCIL. The application is contested by Manyata Developers, primarily on the grounds that the date of default falls within the period specified

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## Facts

Manyata Developers Pvt. Ltd. obtained loan facilities from L&T Finance Limited (LTFL), L&T Housing Finance Limited (LTHFL), and L&T Infrastructure Finance Company Limited (LTIFCL). The loan agreements were executed on various dates, including September 26, 2017, and February 23, 2018. The loan facilities were for specific projects undertaken by Manyata Developers. Manyata Developers allegedly defaulted on its repayment obligations. LTHFL transferred a loan facility of Rs. 115 Crores to LTFL via an Assignment Agreement dated March 29, 2019. LTFL and LTIFCL assigned the loans to Asset Reconstruction Company (India) Ltd. (ARCIL) through Assignment Agreements dated March 30, 2021. ARCIL issued a Default Intimation cum Demand Notice dated October 27, 2021,

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable given the provisions of Section …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring during a

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**Reasoning:** The NCLT observed that the Financial Creditor itself had initially stated the date of

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**Interpretation:** Section 10A of the IBC provides a bar on initiating CIRP for defaults occurring

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**Application:** In this case, the Financial Creditor initially stated the date of default as

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** M/s. Asset…
- **Respondents:** M/s. Manyata…
- **Advocates:** Sharan A K…; Abhijn…; +2 more

## Timeline

- **2017-09-26 — Loan Agree…**: Loan Agreement dated 26.09.2017 between…
- **2018-02-23 — Loan Agree…**: Loan Agreement dated 23.02.2018 between…

## 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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