# In the matter of Shree Vardhman Developers Pvt. Ltd. IB-406-ND-2022

> NCLT judgment dated 2022-05-31. Citation: TCN-2022-NCLT-02526. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 31 May 2022
- **Citation:** TCN-2022-NCLT-02526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-vardhman-developers-pvt-ltd-ib-406-nd-2022-6f858ec2

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by Xander Finance Pvt. Ltd. against Shree Vardhman Developers Pvt. Ltd. The application pertains to a financial debt of ₹45,00,00,000/-. The applicant claims a default amount of ₹17,32,32,014 as of May 5, 2022, with the date of default being December 31, 2020.

## Facts

Xander Finance Pvt. Ltd. filed an application under Section 7 of the IBC, 2016, against Shree Vardhman Developers Pvt. Ltd., claiming a financial debt of ₹45,00,00,000/-. The applicant stated that the date of default was December 31, 2020, and the amount of default as of May 5, 2022, was ₹17,32,32,014. The debt was disbursed in two facilities, each with disbursements on January 13, 2016, and March 17, 2016. The applicant's counsel argued that the default was continuing. However, the court noted that the default date fell within the period specified in Section 10A of the IBC, which restricts the initiation of CIRP for defaults occurring between March 25, 2020, and March 24, 2021. This fact is crucial because Section 10A provides a moratorium on initiating CIRP for

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, is maintainable given the date of default …

**Ratio:** Section 10A of the IBC, 2016, imposes a restriction on the initiation of CIRP for

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**Reasoning:** The court reasoned that since the date of default, as mentioned in the application, was

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**Interpretation:** Section 10A is interpreted as a bar to initiating CIRP for defaults that

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**Application:** The court applied the ratio of Section 10A to the facts of the case, noting

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Xander Finance…
- **Respondents:** Shree Vardhman…

## Timeline

- **2016-01-13 — Disbursement of…**: ₹10,00,00,000/-…
- **2016-03-17 — Disbursement of…**: ₹10,00,00,000/-…

## 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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