# In the matter of Primcomm Media Distribution Ventures Private Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01585. Indiabulls Housing Finance Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/primcomm-media-distribution-ventures-private-limited-fe747a9a

## Summary

### Background

Indiabulls Housing Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Primcomm Media Distribution Ventures Private Limited, citing a default of Rs. 2,60,98,26,700/-. The loan was initially sanctioned to Gnex Realtech Private Limited, with the Corporate Debtor acting as a co-borrower and guarantor. The Corporate Debtor allegedly failed to meet its repayment obligations, leading to the classification of its account as a Non-Performing Asset (NPA).

## Facts

Indiabulls Housing Finance Limited sanctioned a loan of Rs. 190,00,00,000/- to Gnex Realtech Private Limited on 2020-06-03. Primcomm Media Distribution Ventures Private Limited acted as a co-borrower and guarantor for this loan. The loan facility was secured by the Corporate Debtor by pledging 9,999 shares of M/s. Essel Home Private Limited. The entire loan amount was disbursed to Gnex on 2020-06-23. The Corporate Debtor failed to pay the interest and/or principal on the due dates, leading to an Event of Default. Indiabulls issued a notice on 2022-01-20 to all borrowers, including the Corporate Debtor. The account was classified as a Non-Performing Asset (NPA) on 2021-09-30. The total default amount was Rs. 2,60,98,26,700/- as on 2022-01-28. The Corporate Debtor argued

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is liable for the debt disbursed to Gnex Realtech Private Limited, …

**Ratio:** The loan agreement clearly stipulates that 'Borrower' includes co-borrowers, and the

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**Reasoning:** The court rejected the Corporate Debtor's argument that it was not liable for the debt

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**Interpretation:** The interpretation of the loan agreement's clauses regarding the definition of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Charanjeet Singh…; LAKSHMI G…
- **Appellants:** Indiabulls…
- **Respondents:** Primcomm Media…
- **Advocates:** Ahsan A…; Vinita M…

## Timeline

- **2020-06-03 — Loan Sanc…**: Indiabulls Housing Finance Limited sanctioned a loan of Rs. 190,00,00,000/- to Gnex…
- **2020-06-03 — Loan Agre…**: Parties entered into a loan agreement between the Petitioner, Gnex Realtech Private…

## 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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