NCLT Mumbai Initiates Insolvency Process Against Sahara India Medical Institute Ltd., A Sahara Group Company
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Prabhat Kumar (Technical Member), while adjudicating a petition filed in Aprn Enterprises Private Limited v Sahara India medical Institute Limited, has initiated Corporate Insolvency Resolution Process (“CIRP”) against Sahara India Medical Institute Limited, which is...
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Prabhat Kumar (Technical Member), while adjudicating a petition filed in Aprn Enterprises Private Limited v Sahara India medical Institute Limited, has initiated Corporate Insolvency Resolution Process (“CIRP”) against Sahara India Medical Institute Limited, which is a part of the Sahara Group, promoted by Mr. Subrata Roy.
Mr. Jayesh Natvarlal Sanghrajka has been appointed as the Interim Resolution Professional (IRP).
BACKGROUND FACTS
Sahara India Pariwar (Sahara Group) was founded by Mr. Subrata Roy in 1978. The Sahara Group is engaged in myriad of businesses such as finance, infrastructure & housing, real estate, sports, power, manufacturing, media & entertainment, health care, life insurance, educational institute, offline online education, retail, E-commerce, hospital, artificial intelligence, hospitality, et al.
Sahara India medical Institute Limited (“Corporate Debtor”) is a part of Sahara Group, engaged in the business of healthcare and runs the Sahara Hospital.
Dewan Housing Finance Corporation Limited (now Piramal Capital & Housing Finance Limited) had extended financial assistance of Rs. 500 Crores to the Corporate Debtor, and the latter Debtor defaulted in repayment of financial assistance.
Thus, Piramal Capital & Housing Finance Limited filed a petition under Section 7 of the Insolvency Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor, over a default of Rs. 940,96,00,862/- (inclusive of interest).
In the meanwhile, the debt was assigned to APRN Enterprises Private Limited (“Financial Creditor”) and its name came to be substituted in the Section 7 petition.
NCLT VERDICT
The Bench rejected the Corporate Debtor’s contention that the petition under IBC seeks to push a solvent company into insolvency and held as under:
“In view of the foregoing discussion, we do not find any merit in the contention of the Corporate Debtor that the present application seeks to push a solvent company into Resolution Process, which may cause prejudice to the interest of the Corporate Debtor, or such application is in realm of recovery proceedings. Had the Applicant contemplated recovery of its debt as the only objective, it could have taken action under SARFAESI Act, and realised its security interest so as to recover its dues. However, despite this, the act of filing of present application only substantiate the belief that object of the Financial Creditor is to seek the resolution of distress of the Corporate Debtor and nothing else.”
The Bench observed that the Corporate Debtor is in default of a debt due and payable and that the default is for an amount which is more than the minimum amount of pecuniary threshold stipulated under Section 4(1) of IBC. Accordingly, the petition under Section 7 of IBC has been admitted and CIRP has been initiated against the Corporate Debtor.
Mr. Jayesh Natvarlal Sanghrajka has been appointed as the Interim Resolution Professional (IRP).
Case Title: Aprn Enterprises Private Limited v Sahara India medical Institute Limited
Case No.: CP (IB) No.412/MB-IV/2022
Counsel For the Applicant: Mr. Vikram Nankani, Ld. Senior Counsel a/w Mr. Prashant Kumar Adv.
Counsel For the Respondent: Mr. Gaurav Joshi, Ld. Senior Counsel a/w Mr. Feroz Patel, Mr. Sahil Gandhi and Mr. Ankur Kalal i/b Mr. Makrand Gandhi Adv.