Page 555 - IBC Orders us 7-CA Mukesh Mohan

Order Passed Under Sec 7
By Hon’ble NCLT Hyderabad Bench

8) The Petitioner stated that the Corporate Debtor had alienated 3 Flats bearing Nos. 201, 203 and 712
illegally even though there is a charge in favor the Financial Creditor by virtue of an Equitable Mortgage
by deposit of title deeds of the property. The Financial Creditor had initiated criminal proceedings for

cheating and other offences against the Corporate Debtor for entering into such sale deed in utter violation
of the understanding with the CCS, Hyderabad and the same was registered as Crime No. 259/2016.

9) In the above circumstances, in order to restrain the Corporate Debtor from illegally alienating the

properties secured under the above arrangement, the Financial Creditor had approached the Hon'ble XIII
Addl District and Sessions Judge, R.R. District, Hyderabad by filing CO. S.No. 1 of 2017, and also
obtained status quo order in respect of schedule A to X properties vide order dated 6'1' January, 2017 in

IA No. 48 of 2017.

10) As on 30-04-2017, the amount in default works out to Rs. 2,95,00,000/- (Rupees Two Crore Ninety
Five Lakhs Only).

11) It is stated that there is a "Financial Debt" in existence within the meaning of Sec. 8 (a) of the Code;

M/s Asset Advisory Services Pvt Ltd., is a "Financial Creditor" within the meaning of Sec 7 of the Code;
M/s V.S.S. Projects Pvt Ltd., is a "Corporate Debtor" within in the meaning of Sec. 8;The "Corporate
Debtor" had committed default as per Sec 3, Sub-Section 12 of the Code for nonpayment of "financial

debt".

The respondent /Corporate Debtor has filed a reply date 25th July, 2017. The following are their main
contentions:

1) The petition is untenable and unsustainable, either in law or in facts. M/S VSS PROJECTS (PVT)
LTD., is sought to be depicted as Corporate Debtor, by Financial Creditor, with ulterior motives to grab
property of 20 Flats {Including three (3) Flats already sold} pertaining to Corporate Debtor. The present

state of affairs is exclusively due to illegal conduct and functioning of Financial Creditor. As on date,
Corporate Debtor is the absolute owner of 17 flats and 2 acres of land costing more 'than Rupees 10
crores. Each flat is costing around Rs. 40 lakhs as per latest market value Certificate.

2) By selling/ adjusting 6 flats, entire amount paid by Financial Creditor under OTS facility to DHFL can
be re-paid. Claim of Financial Creditor in COS No. 1 of 2017 is sought to be adjusted with 6 Flats, as
pleaded in written statement-cum-counter claim filed in COS 1 of 2017 pending adjudication, before I-
Ion'ble XIII Addl. Judge, R.R District.

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