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2026 Supreme(Online)(NCLT) 755
NATIONAL COMPANY LAW TRIBUNAL
Mohan Prasad Tiwari, J, Charanjeet Singh Gulati, T
Sammaan Capital Limited – Appellant
Versus
JBCG Advisory Services Pvt. Ltd. – Respondent
C.P. (IB)/376(MB)2024
For the Appellants/Petitioners: Gaurav Joshi, Megha Gupta, Pranjali Khemnar, Havanita Chityala
For the Respondents: Mustafa Doctor, Kinnar Shah, Divya Shah
Insolvency and Bankruptcy Code mandates that CIRP is for resolution, not recovery from solvent companies. Default must involve financial debt and insolvency.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 7 - Petition for initiation of Corporate Insolvency Resolution Process - Financial Creditor filed a petition against Corporate Debtor alleging default in loan repayment of Rs. 13,35,69,954.47 - Court held that the Corporate Debtor remains liable for repayment notwithstanding the Builder's obligations, as per the Tripartite Agreement - Court emphasized that IBC is not intended for recovery from solvent companies, but for resolution of insolvent entities - Petition not fit for admission, rejected. (Paras 48-56)
(B) Financial vs. Operational Creditors - A distinction exists regarding the discretion of the Adjudicating Authority under Section 7 and 9 of the IBC pertaining to the admission of applications. (Paras 79-87)
| Table of Content |
|---|
| 1. corporate debtor's borrowing and loan default (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 9 , 10) |
| 2. financial arrangements and collateral agreements (Para 11 , 12 , 13 , 14) |
| 3. repayment obligations and builder's liabilities (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22) |
| 4. notices regarding loan repayment and defaults (Para 23 , 24 , 25 , 26) |
| 5. corporate debtor's solvency and dispute over debts (Para 27 , 28 , 29) |
| 6. arbitration proceedings and interim orders (Para 30 , 31) |
| 7. debt existence and corporate debtor's default (Para 32 , 33 , 34 , 35 , 36) |
| 8. details of loan disbursement and contractual liability (Para 37 , 38 , 39 , 40) |
| 9. implications of loan cancellation on repayment obligations (Para 41 , 42 , 43) |
| 10. finding of corporate debtor's solvency and financial health (Para 44 , 45) |
| 11. legal precedents on ibc as a recovery tool and recent verdicts (Para 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53) |
| 12. conclusion on admission of corporate petition (Para 54 , 55) |
ORDER
1. The Present Company Petition is filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’/ ‘the Code’) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by M/s. Sammaan Capital Limited (Formerly known as IndiaBulls Housing Finance Ltd (IHFL)) (‘the Petitioner’/‘Financial Creditor’) for initiating Corporate Insolvency Resolution Process (‘CIRP’) against JBCG Advisory Services Pvt. Ltd(‘Corporate Debtor’/’Respondent’) for an amount of13,35,69,954.47/- (Rupees Thirteen Crore Thirty Five Lakh Sixty Nine Thousand Nine Hundred and Fifty Four only) as on 19.02.2024.
Brief Facts as per the Petition and the documents annexed thereto:
2. On, 10.03.2019, the Corporate Debtor along with its director made a written Application (Loan Application Form) to the Petitioner to avail a loan facility of Rs. 11,70,00,000/- purchase of two residential units in the project named ‘1651 Pali’ situated at Pali Hill, Bandra, Mumbai – 400050 (hereinafter referred to as the “Project”), being constructed by M/s Shree Ahuja Properties Pvt. Ltd (hereinafter referred to as the “Builder”/ “Developer”). Copy of the Loan Application form dated 10.03.2019 is annexed as Annexure E
3. On 29.03.2019, the Builder issued a Letter granting permission to the Corporate Debtor to mortgage the residential units with the Petitioner. The Petitioner issued a Sanction Letter dated 30.03.2019 for an amount of Rs. 11,70,00,000/- with condition that the Corporate Debtor would offer the residential units being purchased as security for repayment of the loan. Further, on the same day, Petitioner and Corporate Debtor along with two directors, Mr. Chandir Gobind Gidwani and Mr. Jaspal Singh Bindra as co-borrowers executed a Loan Agreement for an amount of Rs. 11,70,00,000/- (Loan Account number HHLAND00482725) stipulating that the repayment of the loan amount would be by way of Equated Monthly Installments (EMIs), with the total amount to be repaid in 180 EMIs. Copy of the Allotment Letter and the permission to Mortgage dated 29.03.2019 is annexed as Annexure G. Copy of a Sanction Letter and Loan Agreement dated 30.03.2019 is annexed as Annexure F and Annexure H, respectively.
4. To secure the repayment of the loan, the Corporate Debtor with its directors, issued an Undertaking for Creation of Security, whereby, they undertook to create a First-Ranking Mortgage over Two Duplex Flats, West North Comer and West South Comer, Top Two Floor, 1651 Pali, Pali Hill, Sandra West, Mumbai – 400050. Copy of the Undertaking dated 30.03.2019 is annexed as Annexure I. The Petitioner disbursed an amount of Rs. Rs. 11,70,00,000/- pursuant to a request for disbursement made by the Corporate Debtor and its director on 30.03.2019. Copy of the Disbursal Request Form is annexed as Annexure J and a copy of the Disbursal Memo issued by the Petitioner is annexed as Annexure K.
5. On 02.04.2019, the Petitioner, the Corporate Debtor and the Builder entered into Tripartite Agreement
