# In the matter of Ojas Tradelease and Mall Management Private Limited

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00724. This is an Interlocutory Application (IA) No.3903 of 2022 filed by M/s Ojas Tradelease and Mall…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ojas-tradelease-and-mall-management-private-limited-b190fe0d

## Summary

### Background

This is an Interlocutory Application (IA) No.3903 of 2022 filed by M/s Ojas Tradelease and Mall Management Private Limited, challenging the maintainability of Application bearing CP(IB) No.865/MB/2022 filed by Central Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. The IA argues that the application is barred under Section 10A of the Code and that there are parallel proceedings initiated by the Respondent/Financial Creditor for enforcement of the same debt. The Main Application was filed by the Respondent/Financial Creditor on 22.06.2022 against the Applicant/Corporate Debtor, which is the Corporate Guarantor to Iskrupa Mall Management Company Private Limited. The alleged amount of financial debt claimed to be in default is

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## Facts

Ojas Tradelease and Mall Management Private Limited (Applicant/Corporate Debtor) filed IA No.3903 of 2022 challenging the maintainability of CP(IB) No.865/MB/2022 filed by Central Bank of India (Respondent/Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Applicant is a corporate guarantor for Iskrupa Mall Management Company Private Limited (Principal Borrower). The Respondent granted a Term Loan of Rs.150 crores to the Principal Borrower, which was guaranteed by the Applicant. The Principal Borrower defaulted on 30.09.2020, leading to a request for One-Time Restructuring (OTR) under the RBI Covid Circular. An OTR was executed, and a Restructuring Agreement was entered into on 21.06.2021. The Principal Borrower failed to meet its

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## Issues and analysis

### Issue 1: Whether the claim of the Respondent/Financial Creditor is barred by Section 10A of the Insolvency …

**Ratio:** The liability of the guarantor arises when the guarantee is invoked and a demand notice

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**Reasoning:** The court reasoned that the default by the Corporate Guarantor occurred only when it

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**Interpretation:** Section 10A prohibits the initiation of CIRP for defaults occurring during the

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**Application:** The court applied the principle that the guarantor's default occurred after the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** Ojas Tradelease…; Central Bank of…

## Timeline

- **2015-09-19 — Sanction…**: Respondent/Financial Creditor granted a Term Loan of Rs.150 crores to the Principal…
- **2015-09-24 — Term Loan Agreement and…**: Respondent/ Financial Creditor entered into a Term Loan Agreement with the Principal…

## 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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