# In the matter of Manyata Developers Pvt. Ltd.

> NCLT judgment dated 2023-09-27. Citation: TCN-2023-NCLT-01448. The case involves an application filed by Asset Reconstruction Company (India) Ltd. (ARCIL)…

- **Court:** NCLT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLT-01448
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manyata-developers-pvt-ltd-a23fd5dc

## 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 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 extended by L&T Finance Limited (LTFL), L&T Housing Finance Limited (LTHFL), and L&T Infrastructure Finance Company Limited (LTIFCL), which were subsequently assigned to ARCIL. The application is contested by Manyata Developers, primarily on the grounds that the default occurred during the period specified under Section 10A of the IBC, which prohibits the

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## Facts

M/s. Asset Reconstruction Company (India) Ltd. (ARCIL) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Manyata Developers Pvt. Ltd. The petition was filed on 26.05.2022, claiming a default of Rs.10,85,79,39,222/- as of 15.04.2022. The debt originated from loan facilities provided by L&T Finance Limited (LTFL), L&T Housing Finance Limited (LTHFL), and L&T Infrastructure Finance Company Limited (LTIFCL) to Manyata Developers. These facilities were governed by loan agreements dated 26.09.2017, 23.02.2018, and 24.10.2017. Subsequently, LTHFL transferred a loan facility of Rs.115 Crores to LTFL via an assignment agreement dated 29.03.2019. ARCIL acquired

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** Section 10A of the IBC prohibits the initiation of corporate insolvency resolution

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**Reasoning:** The NCLT reasoned that the Financial Creditor itself had initially specified the date of

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**Interpretation:** The interpretation of Section 10A of the IBC is that it provides a bar on

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**Application:** In this case, the NCLT applied the provisions of Section 10A of the IBC and

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** M/s. Asset…
- **Respondents:** M/s. Manyata…

## 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 Corporate Debtor and L&T Finance Limited (LTFL)…

## 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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