# In the matter of Porpoise Realtors Private Limited CP(IB)-123 (CHE)2022

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03943. Piramal Capital & Housing Finance Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03943
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/porpoise-realtors-private-limited-cpib-123-che2022-8b32b247

## Summary

### Background

Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Porpoise Realtors Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The financial creditor claimed a debt of Rs. 75,00,52,572/- as of 31.03.2022. The corporate debtor, along with other co-borrowers, had requested financial assistance towards a mortgage loan, which led to a debt and subsequent default. The financial creditor disbursed Rs. 19,80,00,000/- against a sanctioned limit of Rs. 20,00,00,000/-. The corporate debtor made a part payment of Rs. 20,00,000/- on 09.08.2017 but failed to repay the outstanding dues, leading to the account being classified as NPA on 30.06.2015. The financial creditor

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## Facts

Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application against Porpoise Realtors Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The financial creditor claimed a debt of Rs. 75,00,52,572/- as of 31.03.2022, including principal (Rs. 17,79,06,000/-) and interest (Rs. 57,21,26,472/-). The corporate debtor, along with 19 other associate companies, had requested financial assistance towards a mortgage loan. The financial creditor sanctioned a loan of Rs. 20,00,00,000/- vide sanction letter dated 26.09.2014. The financial creditor disbursed Rs. 19,00,00,000/- on 30.09.2014 and Rs. 80,00,000/- on the same date, totaling Rs. 19,80,00,000/-. The corporate debtor made a

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016 is …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

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**Reasoning:** The Tribunal observed that the Financial Creditor had disbursed a sum of

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the CIRP

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**Application:** The Tribunal found that the Financial Creditor had established the existence of

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## Parties

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

## Timeline

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

## 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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