# In the matter of Rai Homes (India) Pvt Ltd

> NCLT judgment dated 2025-01-22. Citation: TCN-2025-NCLT-00598. This case involves an application filed by VSJ Investments Private Limited under Section 7 of…

- **Court:** NCLT
- **Order date:** 22 Jan 2025
- **Citation:** TCN-2025-NCLT-00598
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rai-homes-india-pvt-ltd-20ed9be3

## Summary

### Background

This case involves an application filed by VSJ Investments Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Rai Homes (India) Private Limited for defaulting on a loan. The loan was originally sanctioned by Dewan Housing Finance Corporation Limited (DHFL) for a project in Bhopal, Madhya Pradesh. Piramal Capital & Housing Finance Limited later merged with DHFL and subsequently assigned the loan to VSJ Investments. The respondent defaulted on repayment, leading to the applicant issuing a recall notice and eventually filing the CIRP application. The corporate debtor raised objections based on limitation, disputing the date of default, and questioning the assignment of

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## Facts

VSJ Investments Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rai Homes (India) Private Limited. The application was filed on 25.04.2023. The default amount was Rs. 24,37,08,496/- (Principal Amount of Rs. 8,54,03,951/- + Interest of Rs. 15,83,04,545/-). The date of default as stated in Part IV of the application is 30.06.2022. The applicant is a company incorporated under the Companies Act, 1956 on 09.06.1993. The respondent is a private limited company incorporated under the Companies Act, 1956 on 15.04.2011. The respondent had applied for a loan facility of Rs.10,00,00,000/- to Dewan Housing Finance Corporation Limited (DHFL) and the same was

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** The date of NPA classification is to be treated as the 'date of default' within the ambit

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**Reasoning:** The court relied on the NCLAT's observation in Milind Kashiram Jadhav's case, which

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**Interpretation:** The interpretation of the 'date of default' is crucial in determining whether

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**Application:** The court applied the ratio to the present case, considering the date of NPA

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## Parties

- **Judges:** Chitra Ram…; KAUSHALENDRA…
- **Appellants:** VSJ Investments…
- **Respondents:** Rai Homes (India)…; Rai Homes (India)…

## Timeline

- **2014-01-22 — Loan San…**: DHFL sanctioned a loan facility of…
- **2014-01-25 — Loan Agre…**: Loan agreement executed between DHFL and…

## 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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