# In the matter of Venue Prmoters Private Limited CP(IB)-132 (CHE)2022

> NCLT judgment dated 2023-03-31. Citation: TCN-2023-NCLT-03899. Piramal Capital & Housing Finance Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Mar 2023
- **Citation:** TCN-2023-NCLT-03899
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/venue-prmoters-private-limited-cpib-132-che2022-0c1594c8

## Summary

### Background

Piramal Capital & Housing Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Venue Promoters Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a debt of Rs. 75,00,52,572/-. The Corporate Debtor, along with other co-borrowers, had requested financial assistance towards a mortgage loan. The account was classified as NPA on 30.06.2015. The Corporate Debtor argued that the application was barred by limitation and the amount claimed was inaccurate.

## Facts

Piramal Capital & Housing Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Venue Promoters Private Limited (Corporate Debtor). The Financial Creditor claimed a debt of Rs. 75,00,52,572/- as of 31.03.2022. The Corporate Debtor, along with 19 other associate companies, had requested financial assistance towards a mortgage loan. The Financial Creditor sanctioned a loan of Rs. 20,00,00,000/- jointly to the Corporate Debtor and the co-borrowers. The loan was secured by a joint mortgage of immovable properties. The Corporate Debtor executed a Common Loan Agreement and a Demand Promissory Note. The date of default was averred as 09.08.2017. The account was classified as NPA on 30.06.2015. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Tribunal found that the Financial Creditor had provided sufficient evidence to prove

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**Interpretation:** Section 7 is interpreted to mean that once a default occurs, the CIRP can be

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**Application:** The Tribunal applied Section 7 to the facts of the case, noting that the

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** PIRAMAL CAPITAL &…
- **Respondents:** Venue Promoters…

## Timeline

- **2014-09-26 — Sanction…**: Sanction letter issued by the Financial…
- **2014-09-26 — Common Loan A…**: Common Loan Agreement executed by the…

## 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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