In the National Company Law Tribunal,

Bengaluru, Special Bench

C.P. (IB)/22(BEN)2021

Court No. 1

Item No. 108

IBC under Sec 7

In the matter of:

YES BANK LIMITED

........Petitioner

V/s

CORNERSTONE PROPERTIES PRIVATE LIMITED ........Respondent

Order delivered on.22/04/2021

Coram:

Shri RAJESWARA RAO VITTANALA, Honble Member(J)

Shri ASHUTOSH CHANDRA, Honble Member(T)

For Petitioner(s):

MS. PINAZ MEHTA

For Respondent(s):

MR. MOHAMED IBRAHIM

Order

CP (IB) No. 22/BB/2021 is disposed of by separate order.

Sd/- Sd/-

Member(T) Member(J)

Brunda

NCLT, BENGALURU BENCH C.P. (IB) No.22/BB/2021

Page 1 of 25

IN THE NATIONAL COMPANY LAW TRIBUNAL

BENGALURU BENCH

C.P.(IB)No.22/BB/2021

U/s.7 of the IBC, 2016

R/w. Rule 4 of I&B (AAA) Rules, 2016

Between

M/s. Yes Bank Limited

Yes Bank Towers, IFC-2, 15^th floor,

Senapati Bapat Marg, Elphinstone (w),

Mumbai – 400 013 … Financial Creditor

And

M/s. Cornerstone Properties Private Limited

583, 1^st Cross, 9^th Main,

Off CMH Road, 1^st Stage, Indiranagar,

Bengaluru – 560 038

… Corporate Debtor

Pronouncement of Order: 22^nd April, 2021

Coram: 1. Hon’ble Shri Rajeswara Rao Vittanala, Member (Judicial)

2. Hon’ble Shri Ashutosh Chandra, Member (Technical)

Parties/Counsels Present (through Video Conference):

For the Petitioner

: Ms. Pinaz Mehta

For the Respondent

: Mr. Mohamed Ibrahim

O R D E R

Per: Rajeswara Rao Vittanala, Member (J)

1.

C.P.(IB)No.22/BB/2021 is filed by M/s. Yes Bank Limited

(‘Financial Creditor’), U/s. 7 of the IBC, 2016, R/w Rule 4 of the I&B

(AAA) Rules, 2016, by inter alia seeking to initiate Corporate

Insolvency Resolution Process (CIRP) in respect of M/s. Cornerstone

Properties Private Limited, on the ground that it has committed

NCLT, BENGALURU BENCH C.P. (IB) No.22/BB/2021

Page 2 of 25

default for total amount of Rs.167,26,97,640.50/- (Rupees One

Hundred and Sixty Seven Crores Twenty Six Lakhs Ninety Seven

Thousand Six Hundred and Forty and Fifty Paisa Only) including

interest.

2.

Brief facts of the case, as mentioned in the Company Petition, which

are relevant to the issue in question, are as follows:

(1)

M/s. Yes Bank Limited (Petitioner/Financial Creditor) was

incorporated on 21.11.2003 with Identification No. L65190M200

3PLC143249 and having registered office situated at Yes Bank

Towers, IFC-2, 15^th Floor, Senapati Bapat Marg, Elphinstone (W),

Mumbai 400013. The Financial Creditor has its branch office at

First Floor, Prestige Obelisk, Municipal No.3, Kasturba Gandhi

Road, Bengaluru - 560001. The Financial Creditor is Banking

Company within the meaning of Section 5(c) of the Banking

Regulation Act, 1949.

(2)

M/s. Cornerstone Properties Private Limited (Respondent/

Corporate Debtor) was incorporated on 03.03.2004, having CIN:

U07010KA2004PTC033504 and having registered office situated

at 583, 1^st Cross, 9^th Main, Off CMH Road, 1^st Stage, Indiranagar,

Bengaluru

-

560038.

Its

Authorised

Share

Capital

is

Rs.25,00,00,000/-

and

Paid-Up

Share

Capital

is

Rs.19,32,00,000/-. M/s. Mantri Cornerstone Holding Private

Limited (“Borrower”) was established as a 50-50% joint venture

Company between the Corporate Debtor and Mantri Developers

Pvt. Ltd.

(3)

It is stated that based on the representations of the Corporate

Debtor, the Financial Creditor granted a term loan facility of INR.

300,00,00,000/- to the Borrower vide Loan Agreement dated

01.06.2015 executed between the Financi