In a Section 7 insolvency petition, the Tribunal held the application time-barred because the calculated date of default occurred during the Section 10A moratorium, dismissal ordered accordingly.
Petition dismissed as barred under Section 10A of the Insolvency and Bankruptcy Code, 2016.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH, COURT - II
C.P. (IB) 1051/MB/2023
Under section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
In the matter of
Mobile Constructions Private Limited
Having its address at 6th Floor, A Wing, Universal Business Park, Chandivali, Andheri East, Mumbai-400072
..… Petitioner/ Financial Creditor
Versus
Apple Land Development Private Limited
Having its address at 2348, Bldg. No.49, Shree Satya sai Kripa soc. Gandhi Nagar, Opp. MIG Cricket Club, Bandra (East) Mumbai -400051
….. Respondent/Corporate Debtor
Order Delivered on :- 21/02/2024
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
Coram:
Mr. Anil Raj Chellan Mr. Kuldip Kumar Kareer Member (Technical) Member (Judicial)
Appearances:
For the Financial Creditor : Adv. Ashish Pyasi a/w Anjali Shahi
ORDER
Per: -Mr. Kuldip Kumar Kareer, Member (Judicial)
The submissions of the Financial Creditor are as follows:
Page 2 of 7
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
feasible for Corporate Debtor to raise funds from the market or financial institutions. At the request and assurance of the Corporate Debtor, Applicant /Financial Creditor agreed to extend financial assistance in the nature of a loan to the Corporate Debtor and disbursed the amount of Rs. 1,57,50,000/to Corporate Debtor upon the conditions that the Corporate Debtor would pay interest on a half-yearly basis on the sum of Rs.1,57,50,000/- at the rate of 12% p.a. and that the Corporate Debtor would repay the principal amount of Rs. 1,57,50,000/within a period of 1 year from the date of disbursal.
| 10thApril, 2019 | 30,00,000 |
|---|---|
| 11thApril, 2019 | 30,00,000 |
| 12thApril, 2019 | 29,50,000 |
| 18thApril, 2019 | 35,00,000 |
| 24thApril, 2019 | 33,00,000 |
| Total (Rs.) | 1,57,50,000 |
Page 3 of 7
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
outstanding and payable to the Financial Creditor. However, the Corporate Debtor defaulted in repayment of the said interest and, therefore, committed the first default under the arrangement between the parties. Thereafter, the Corporate Debtor has also failed to repay the outstanding amount along with interest thereon in a recurring manner and the same is due and payable till this date. Thus, a default of Rs. 2,57,53,424/- (Rupee Two crore fifty-seven lakh fifty three thousand four twenty four) was committed by the Corporate Debtor as on 31st July 2023. In view of the above, vide notice dated 20 July 2020, the Financial Creditor issued a Demand Notice recalling the overdue amount. Further, vide demand notice dated 25 May 2023, the Financial Creditor issued another Demand Notice recalling the entire principal and interest amount as on May 2023.
Analysis and Findings:
Page 4 of 7
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
Page 5 of 7
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
20.04.2019. It has been claimed by the Petitioner that the loan was repayable within one year and payment of interest @ 12% p.a. was to be made on halfyearly basis. On the basis of this assertion, the Petitioner has claimed that the first instalment of interest became due on 10.10.2019 which is said to be the first date of default.
Page 6 of 7
IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-II, MUMBAI BENCH
C.P.(IB)/1051/MB/2023
be filed, if the default has taken place within the 10A i.e. from 25.03.2020 to 24.03.2021.
Sd/-
Sd/-
ANIL RAJ CHELLAN KULDIP KUMAR KAREER (MEMBER TECHNICAL) (MEMBER JUDICIAL)
Sushil
Page 7 of 7
2 issues framed by the court
Whether a Section 7 insolvency petition is maintainable when the date of default falls within the moratorium period of Section 10A.
Whether the date of default for determining Section 10A applicability is the date of first interest non-payment or the date following a written demand notice.
3 provisions across 1 enactments
Mobile Constructions Private Limited
Apple Land Development Private Limited
Anil Raj Chellan
Kuldip Kumar Kareer
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
