MAITREYA DOSHI Vs. ANAND RATHI GLOBAL FINANCE LTD

JUDGEMENT

(1.) This appeal under Sec. 62 of the Insolvency and Bankruptcy Code 2016, hereinafter referred to as the 'IBC', is against a Judgement and Order dtd. 25/8/2021, passed by the National Company Law Appellate Tribunal (NCLAT), dismissing the Company Appeal (AT) (Insolvency) No. 191 of 2021 filed by the Appellant, against an order dtd. 19/2/2021, passed by the Adjudicating Authority (National Company Law Tribunal), NCLT, Mumbai Bench admitting a Company Petition C.P. (IB) No. 1220/MB/2020 filed by the Respondent No. 1 - Anand Rathi Global Finance Limited as Financial Creditor, for initiation of the Corporate Insolvency Resolution Process (CIRP) of M/s Doshi Holdings Pvt. Ltd., hereinafter referred to as "Doshi Holdings", under Sec. 7 of the IBC. The Appellant is a suspended Director of Doshi Holdings.

(2.) The Respondent No 1, a Non-banking Financial Company, hereinafter referred to as the "Financial Creditor" disbursed loan to the tune of Rs.6.00 Crores to M/s Premier Limited, hereinafter referred to as "Premier" under three separate Loan-cum-Pledge Agreements, dtd. 29/6/2015, 4/5/2016 and 5/10/2016, respectively. According to the Appellant, Doshi Holdings pledged shares held by it in Premier, in favour of the Financial Creditor, by way of security for the loan.

(3.) According to the Appellant, the Loan-cum-Pledge Agreements contemplated two distinct transactions under one document, that is, grant of loan to Premier, and creation of pledge by Doshi Holdings of securities held by the Doshi Holdings in Premier.