# In the matter of Shankeshwar Properties Pvt. Ltd.

> NCLT judgment dated 2023-11-24. Citation: TCN-2023-NCLT-00561. Sabari Developers LLP filed an application under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Nov 2023
- **Citation:** TCN-2023-NCLT-00561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shankeshwar-properties-pvt-ltd-6bb95f6a

## Summary

### Background

Sabari Developers LLP filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking admission of a claim amount by the Resolution Professional for Shankeshwar Properties Pvt. Ltd. (Corporate Debtor) for interest amounting to INR 13,66,46,519. The Applicant claimed that the Corporate Debtor approached them in 2014 for need-based finance for a real estate project, with an agreed interest rate of 15% p.a. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.02.2023.

## Facts

In 2014, Shankeshwar Properties Pvt. Ltd. (Corporate Debtor) approached Sabari Developers LLP (Applicant) for need-based finance for a real estate project. The terms included an interest rate of 15% p.a. on unsecured loans. The Applicant advanced monies, and the Corporate Debtor made repayments of principal and interest. Interest was not booked in the Applicant's accounts from April 2017. On 05.04.2019, the Corporate Debtor confirmed a balance loan amount of INR 12,18,28,245 plus interest. The Corporate Debtor was admitted into CIRP on 03.02.2023. The Applicant filed a claim of INR 14,86,93,656, including INR 1,20,47,139 as the outstanding principal and interest accounted in the books of the applicant and INR 13,66,46,517 as interest accrued from 01.04.2017 to

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## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the interest component of the claim …

**Ratio:** The Adjudicating Authority is not a fact-finding authority to determine the claims of the

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**Reasoning:** The NCLT found that the Applicant had not provided sufficient evidence to support its

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**Interpretation:** This issue concerns the admissibility of claims in the CIRP process. The

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**Application:** In this case, the NCLT applied the principle that the Resolution Professional

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Sabari Developers…
- **Respondents:** Shankeshwar…; S. Gopalakr…

## Timeline

- **2014-01-01 — Corporate Debtor…**: Shankeshwar Properties Pvt. Ltd. approached…
- **2014-06-20 — Agreement o…**: Terms and conditions of the finance were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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