Invent Assets Securitisation & Reconstruction Pvt. Ltd Vs Reliance Home Finance Limited (NCLT Mumbai)
NCLT Mumbai held that section 7 application for initiation of Corporate Insolvency Resolution Process [CIRP] against Reliance Home Finance Limited [Corporate Debtor] admitted as default in repayment of debt exceeding Rs. 1 Crore established.
Facts- This is an petition filed on 17.01.2025 by the Applicant- Invent Assets Securitisation & Reconstruction Private Limited (Financial Creditor/Petitioner), against the Respondent- Reliance Home Finance Limited (Corporate Debtor), under Section 7 of the Insolvency & Bankruptcy Code 2016 r/w Rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, seeking commencement of the Corporate Insolvency Resolution Process of the Corporate Debtor, appointment of Interim Resolution Professional and declaration of moratorium. The amount claimed to be in default is INR 7,80,98,017/- including outstanding interest of INR 80,98,017/-.
Conclusion-
The debt is evidenced by loan documents, disbursement records, acknowledgments by the Corporate Debtor, and financial statements. The existence of debt and default is not in dispute. We come to inescapable conclusion that the Petitioner has established the debt and default which is more than Rs. 1 crore prescribed u/s 4 of IBC.
It is well-settled position that the Adjudicating Authority has to determine whether there is debt and default and if it is satisfied that a default has occurred, then the petition under Section 7 of the Code must be admitted unless it lacks other necessities as mandated thereunder.
