# In the matter of Vijay Group Realty LLP

> NCLT judgment dated 2025-07-04. Citation: TCN-2025-NCLT-00833. Asset Reconstruction Company (India) Limited filed IA No. 1161/2022 in CP No. 4359/2019 under…

- **Court:** NCLT
- **Order date:** 4 Jul 2025
- **Citation:** TCN-2025-NCLT-00833
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/vijay-group-realty-llp-f9ab0a87

## Summary

### Background

Asset Reconstruction Company (India) Limited filed IA No. 1161/2022 in CP No. 4359/2019 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions related to pledged shares of M/s. Vijay Group Realty LLP (Corporate Debtor). The applicant sought permission to intervene, exclusion of pledged shares from the resolution plan, exemption from moratorium, and directions to the CoC and RP.

## Facts

L&T Housing Finance Limited and L&T Finance Limited granted financial assistance to Vijay Group Housing Private Limited (Borrower).

M/s Vijay Group Realty LLP (Corporate Debtor) holds 95% of the equity shares in the Borrower and pledged these shares to Vistra ITCL (India) Limited (Security Trustee).

The Lenders assigned their financial assistance to Asset Reconstruction Company (India) Limited (Applicant).

The Borrower defaulted, leading the Applicant to declare the account as NPA and issue recall notices.

The Corporate Debtor was admitted into CIRP on 04.08.2021, and a moratorium was imposed.

The Applicant filed IA 1161/2022 seeking various reliefs related to the pledged shares.

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## Issues and analysis

### Issue 1: Whether the Applicant, as a pledgee, can enforce its security interest over the pledged shares …

**Ratio:** Section 14(1)(c) of the Code prohibits any action to foreclose, recover, or enforce any

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**Reasoning:** The tribunal noted that the Applicant is unable to enforce its security due to the

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**Interpretation:** The moratorium under Section 14 prevents the enforcement of security interests,

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**Application:** The tribunal rejected the prayer for exemption from the moratorium, holding

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## Parties

- **Judges:** LAKSHMI G…; Hariharan…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Vijay Group…; M/s. Vijay Group…
- **Other parties:** Bhanu Navin…
- **Advocates:** Jehangi…; Aparna…; +3 more

## Timeline

- **2021-08-04 — Admission in…**: The Corporate Debtor was admitted into CIRP vide order dated 04.08.2021, and a moratorium…
- **2022-09-24 — Resolution Plan…**: The RP submitted that the shares are already included in the Resolution Plan which was…

## 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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