NCLT Bengaluru Initiates Insolvency Proceedings Against Mantri Developers Ltd., A Mantri Group Company
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Shri T. Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in M/s. Indiabulls Housing Finance Limited v M/s. Mantri Developers Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (“CIRP”) against Mantri Developers Pvt. Ltd. Mr....
The National Company Law Tribunal (“NCLT”), Bengaluru Bench, comprising of Shri T. Krishnavalli (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), while adjudicating a petition filed in M/s. Indiabulls Housing Finance Limited v M/s. Mantri Developers Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (“CIRP”) against Mantri Developers Pvt. Ltd. Mr. Ahsan Ahmad has been appointed as the Interim Resolution Professional (“IRP”).
Background Facts
Mantri Developers Pvt. Ltd. (“Corporate Debtor”) is a Mr. Sushil Mantri promoted company and a part of Mantri Group of Companies. The Corporate Debtor is engaged in the business of real estate development and has various residential, retail and hospitality projects in Bengaluru, Hyderabad, Pune and Chennai.
The Corporate Debtor had approached Indiabulls Housing Finance Limited (“Financial Creditor”) for availing loan facility for development and execution of Projects, mainly ‘Mantri Centrium’ and ‘Mantri Webcity’. The Financial Creditor sanctioned loan to the Corporate Debtor aggregating to Rs.579,20,00,290/-. The Corporate Debtor defaulted in repayment of the loan facilities since the project timelines were affected due to various reasons.
Therefore, the Financial Creditor filed a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, over a default of Rs. 456,68,73,538/-.
The NCLT Bench observed that the Financial Creditor has proved the existence of debt and default and the default is evidently above the minimum threshold of Rs. 1 Crore. In view of the same, the Bench admitted the petition under Section 7 of IBC and initiated CIRP against the Corporate Debtor. Mr. Ahsan Ahmad has been appointed as the Interim Resolution Professional (“IRP”).
Case Title: M/s. Indiabulls Housing Finance Limited v M/s. Mantri Developers Pvt. Ltd.
Case No.: C.P. (IB) No.94/BB/2022
Counsel For the Petitioner: Shri C.K. Nandakumar, Sr. Adv. along with Shri Prasanth V.G. and Ms. Lekha, Advs.
Counsel For the Respondent: Shri M.S. Shyam Sundar, Sr. Adv. along with Ms. Krutika Raghavan, Ms. Sameeksha Patil, Mohnish Mohan, Advs.