IN THE NATIONAL COMPANY LAW TRIBUNAL

NEW DELHI BENCH

COURT-IV

COMPANY PETITION (I.B.) NO. 411 OF 2024

(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:

DYNAMIC FINVEST SERVICES PRIVATE LIMITED

…APPLICANT/FINANCIAL CREDITOR

VERSUS

AKSHAJ ESTATES PRIVATE LIMITED

…CORPORATE GUARANTOR

CORAM:

SH. MANNI SANKARIAH SHANMUGA SUNDARAM,

HON’BLE MEMBER (JUDICIAL)

DR. SANJEEV RANJAN,

HON’BLE MEMBER (TECHNICAL)

Order Delivered on: 10.01.2025

PRESENT:

For the Applicant : Adv. Nakul Gandhi, Adv. Mujeeb

For the Respondent :

ORDER

PER: MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (J)

1. The Instant Application is filed on behalf of the Dynamic Finvest Services Private Limited (hereinafter referred to as "Applicant/Financial Creditor") under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (‘CIRP’) against Akshaj Estates Private Limited ("Respondent") having CIN U70200DL2012PTC230158 on the ground that the respondent had committed a default in payment for an amount aggregating to Rs.

1,94,11,439.90/-.

2. The Corporate Guarantor i.e. Akshaj Estates Private Limited is a Private Limited Company registered under the Companies Act, 1956, bearing CIN: U70200DL2012PTC230158 having its registered office situated at 911/19, Surya Kiran Building, KG Marg, Central Delhi, New Delhi - 110001, India. Since the registered office of the Corporate Guarantor is in New Delhi, this Tribunal having territorial jurisdiction over the NCT of Delhi is the Adjudicating Authority in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of respondent corporate debtor under sub-section (1) of Section 60 of the Code.

3. Briefly stated facts of the case as mentioned in the Company Application, which are relevant to the issue in question, are as follows:-

a) The Applicant submitted that Pursuant to the request of the Corporate Debtor, the Financial Creditor agreed to extend financial assistance to which Corporate Debtor agreed for a Loan Agreement dated 18.06.2012. The said financial assistance was required for the purpose of investment so as to provide the Corporate Debtor a growth capital for its expansion plans. Vide the Loan Agreement Financial Creditor granted the Corporate Debtor a Term Loan of Rs. 7.00,000/- (Rupees Seven lakhs only), and subject to terms and conditions enumerated therein.

b) The Applicant stated that the said credit facility was secured by a Deed of Personal Guarantee duly signed by Mr. Rajiv Goyal, S/o Mr. Budh Ram Goyal R/o H. No 64, Sector 9 A, Chandigarh i.e. the Personal Guarantor. Accordingly, on 23.06.2012, the Financial Creditor disbursed the loan amount.

c) As per Clause 1.7 of the Loan Agreement, the Corporate Debtor was required to repay the principal loan amount in 48 equal monthly instalments following a 12-month moratorium period, as outlined in the Amortization Schedule (Schedule III). Interest was set at 24% per annum, payable on 15th monthly. In case of default, Clause 1.4 stipulated compound interest at the higher of 30% per annum or the applicable interest rate, along with liquidated damages of 2% per annum from the due date.

d) The Applicant submitted that the Corporate Debtor, after obtaining financial assistance, persistently defaulted on repayment of the principal amount, interest, and other charges under the loan terms. Consequently, on 15.06.2014, the Financial Creditor classified the Corporate Debtor as a Non-Performing Asset (NPA).

e) It further submitted that the Corporate Debtor neglected and failed to clear the overdue sum in connection with the Loan Agreement and vide letters dated 31.03.2020, 31.03.2021 and 31.03.2022, 31.03.2023 the Corporate Debtor duly acknowledged the outstanding balance in their books of ac