J.C. Flowers Asset Reconstruction Pvt. Ltd. Vs Bliss House Private Limited (NCLT Delhi)
The petition before the National Company Law Tribunal Delhi was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by a financial creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The financial creditor, an asset reconstruction company registered under the Companies Act, 2013 and the SARFAESI Act, had acquired rights in relation to a loan originally granted by Sammaan Capital Limited (formerly Indiabulls Housing Finance Limited).
The corporate debtor, a real estate company and a wholly owned subsidiary of another entity, had availed a loan facility of ₹105 crore under a loan agreement dated 29 March 2019. The loan was secured through multiple security documents, including mortgages, hypothecation, guarantees, and pledges over movable and immovable assets. The promoters and several group entities acted as obligors and were jointly and severally liable for repayment.
The loan agreement provided for repayment over a tenure of 60 months and included various events of default. One such event was “material adverse effect,” which could arise if the ability of the obligors to perform their obligations was adversely affected. During the loan tenure, investigations by enforcement agencies against the personal guarantors led the lender to form an apprehension that repayment ability was materially affected. Consequently, a recall notice dated 9 March 2020 was issued, declaring an event of default and demanding repayment within five days.
