# In the matter of Shaft Developers Private Limited TA (IBC)-63(PB)-2022

> NCLT judgment dated 2023-01-12. Citation: TCN-2023-NCLT-05067. Piramal Capital and Housing Finance Limited (formerly known as Devan Housing Finance…

- **Court:** NCLT
- **Order date:** 12 Jan 2023
- **Citation:** TCN-2023-NCLT-05067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shaft-developers-private-limited-ta-ibc-63pb-2022-970375da

## Summary

### Background

Piramal Capital and Housing Finance Limited (formerly known as Devan Housing Finance Corporation Limited) filed an application under Rule 16(d) of the NCLT Rules, 2016, seeking reliefs against Shaft Developers Private Limited. The applicant had sanctioned a loan to the respondent along with 18 other borrowers. The borrowers jointly executed a loan agreement and financial documents. The financial creditor sanctioned and disbursed a significant sum. The borrowers defaulted on repayments, leading to the account being classified as a Non-Performing Asset (NPA). The applicant filed 19 petitions to initiate CIRP proceedings against the borrowers. The corporate debtor and borrowers deposited original title documents to create an equitable mortgage.

## Facts

Piramal Capital and Housing Finance Limited (formerly Devan Housing Finance Corporation Limited) sanctioned a loan to Shaft Developers Private Limited along with 18 other borrowers. A loan agreement was executed, and a substantial amount was disbursed. The borrowers defaulted, leading to NPA classification. The applicant filed 19 CIRP petitions. The corporate debtor and borrowers deposited title documents to create an equitable mortgage. The applicant requested the transfer of a related matter to consolidate proceedings, arguing that separate benches could lead to conflicting orders. The relevance of these facts lies in establishing the financial relationship, the default, and the need for consolidated adjudication.

## Issues and analysis

### Issue 1: Whether the Transfer Application bearing no. TA (IBC)-63(PB)/2022 should be allowed and …

**Ratio:** The principle of consolidation of cases is applied when matters are connected and arise

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**Reasoning:** The court reasoned that all matters were connected and arose out of a single loan

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**Interpretation:** The interpretation focuses on the court's discretion to consolidate related

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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:** Ramalingam…
- **Appellants:** M/s. Piramal…
- **Respondents:** M/s SHAFT…
- **Advocates:** Deepika M…

## Timeline

- **2014-09-26 — Loan Sanc…**: Applicant sanctioned a loan to the Respondent…
- **2014-09-26 — Loan Agreement…**: Borrowers jointly executed the Loan…

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