# In the matter of Nellai Realtors Private Limited CP (IB)-110 (CHE) 2022

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03901. Piramal Capital & Housing Finance Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nellai-realtors-private-limited-cp-ib-110-che-2022-88a3dbde

## Summary

### Background

Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Nellai Realtors Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on a financial debt and alleged default by the corporate debtor. The financial creditor claimed a debt of Rs. 75,00,52,572/-. The corporate debtor contested the application, primarily on the grounds of the date of default and limitation.

## Facts

Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application against Nellai Realtors Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claimed a debt of Rs. 75,00,52,572/-. The debt arose from a loan facility sanctioned to the Corporate Debtor and several co-borrowers. The loan was secured by a mortgage of immovable properties and personal guarantees of the directors of the Corporate Debtor and co-borrowers. The date of default was averred as 09.08.2017. The Corporate Debtor argued that the date of default was incorrect and the application was barred by limitation. The Corporate Debtor had made part payments and acknowledged the debt in writing after the initial default. The

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## Issues and analysis

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

**Ratio:** The scheme of the Code ensures that when a default takes place, in the sense that a debt

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Innoventive Industries Limited v.

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**Interpretation:** The term 'default' under Section 3(12) of the IBC is interpreted broadly to

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**Application:** The NCLT determined that the Corporate Debtor had committed a default in

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** Nellai Realtors…
- **Advocates:** Om Pra…; Deepika M…; +2 more

## Timeline

- **2014-09-26 — Sanction…**: Sanction letter issued by…
- **2014-09-26 — Loan Agre…**: Common Loan Agreement executed by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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