Apnaghar Builders Pvt. Ltd. Vs Intense Fitness & Spa Pvt. Ltd. & Ors. (NCLAT Delhi)
NCLAT Delhi held that if CIRP is initiated fraudulently for any purpose other than the resolution of insolvency or liquidation it can be set aside. Accordingly, CIRP set aside and appeal allowed.
Facts- Intense Fitness & Spa Pvt. Ltd. (Corporate Debtor)/Respondent No. 1 has alleged to have availed loan from Navayuga Engineering Company Ltd. which was assigned by it to CVR Holdings Pvt. Ltd. (Financial Creditor)/Respondent No. 2 by way of an assignment agreement dated 10.02.2020 executed between Navayuga, Respondent No. 1 and Respondent No. 2 in respect of an outstanding loan of Rs. 11,08,94,834/-.
The Assignee / Respondent No. 2 filed the application u/s. 7 of the Code before the Tribunal bearing CP (IB) No. 228/ND/2022 against the Corporate Debtor / Respondent No. 1 alleging that as per agreement dated 10.02.2020, the CD was to repay the loan amount by 31.12.2020 without interest with the condition that it shall pay interest @ 10% w.e.f. 01.01.2021 but latest by 30.06.2021. In part IV of the application (form 1) amount of Rs. 11,08,94,834/- was claimed as on 01.03.2022 as due and payable.
The Tribunal has noticed that the Corporate Debtor/Respondent No. 1, in its reply, admitted the debt and default, therefore, the IRP named by Respondent No. 2 (Financial Creditor), namely, Jagdish Singh Nain was appointed as such and moratorium was imposed. It is pertinent to mention here that the suspended director of the CD/R1 did not challenge the order dated 02.08.2022 by of way an appeal. However, the impugned order has been challenged by the present Appellant who was not a party to the application before the Tribunal.
