# In the matter of KAILASH REALTORS PRIVATE LIMITED

> NCLT judgment dated 2025-11-12. Citation: TCN-2025-NCLT-01650. IL&FS Financial Services Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Nov 2025
- **Citation:** TCN-2025-NCLT-01650
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/kailash-realtors-private-limited-29ab4491

## Summary

### Background

IL&FS Financial Services Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Kailash Realtors Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition was filed due to the corporate debtor's failure to repay a financial debt of Rs. 23,07,38,282/-.

## Facts

IL&FS Financial Services Limited ('Financial Creditor/Applicant') filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kailash Realtors Private Limited ('Corporate Debtor/Respondent').

The Corporate Debtor, Kailash Realtors Private Limited, was incorporated on 23.10.2006.

The Corporate Debtor defaulted on a payment of Rs.23,07,38,282/-, which constitutes a Financial Debt as defined under Section 5(8) of IBC.

The Respondent is a Corporate Guarantor to the Principal Borrower i.e., M/s Ansal Properties and Infrastructure Limited.

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC is maintainable against the Corporate Debtor, …

**Ratio:** The fact of initiation of CIRP against the Principal Borrower and/or Corporate Guarantor

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**Reasoning:** The Adjudicating Authority relied on the Supreme Court's decision and NCLAT's judgment in

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**Interpretation:** The obligation of a guarantor is co-extensive and coterminous with the

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**Application:** The Adjudicating Authority concluded that the initiation of CIRP against the

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** IL & FS Financial…
- **Respondents:** KAILASH REALTORS…
- **Other parties:** Chandar P…
- **Advocates:** Gopal…; Satendra Ku…; +1 more

## Timeline

- **2016-02-16 — Sanction…**: Applicant granted a term loan facility of Rs.50,00,00,000/- to Ansal Properties and…
- **2016-03-18 — Guarantee…**: The Corporate Debtor executed a deed of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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