NCLT Delhi Admits Rana Kapoor Family Company Bliss House Into Insolvency Over ₹922-Crore Default

The National Company Law Tribunal (NCLT) at Delhi has admitted Bliss House Private Limited, a real estate firm promoted by the family of Yes Bank founder Rana Kapoor, into insolvency over alleged defaults of about Rs 922.46 crore.

The tribunal held that an arbitral award can extend the limitation period for initiating insolvency proceedings even if the award is under challenge.

A bench of Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri admitted a CIRP plea filed by J.C. Flowers Asset Reconstruction Private Limited.

The tribunal appointed Sapan Mohan Garg as the Interim Resolution Professional and imposed a moratorium, which puts all recovery proceedings against the company on hold.

Bliss House is a wholly owned subsidiary of RAB Enterprises (India) Private Limited, a group promoted by Bindu Kapoor, wife of Yes Bank founder Rana Kapoor.

The company received a Rs.105 crore loan from Sammaan Capital Limited, formerly Indiabulls Housing Finance, under a loan agreement dated March 29, 2019. The loan formed part of a larger lending arrangement with several RAB group entities. The exposure was later assigned to J.C. Flowers.

The dispute dates back to March 2020, when the lender recalled the loan after invoking an Event of Default clause. The recall was based on a Material Adverse Effect. The lender cited criminal investigations by the Enforcement Directorate and the Central Bureau of Investigation against the promoters Rana Kapoor in Yes Bank-DHFL Case. It argued that these probes had impaired the repayment ability of the borrower and its personal guarantors.

Bliss House opposed the insolvency plea. It argued that the recall was premature. It also claimed that the debt was barred by limitation. The tribunal rejected these defences.

The bench relied on an arbitral award passed in March 2023. It held that the award had the effect of extending the limitation period. The tribunal cited the Supreme Court's ruling in Dena Bank vs. C. Shivakumar Reddy, which recognises that a final adjudication gives rise to a fresh cause of action for initiating insolvency proceedings.

For Applicant: Advocates Siddhant Kumar, Manya Chandok, Shagun Chopta, Samar Singh, Naman Gowda, and Siddhant Ahirwal

For Respondent: Senior Advocate P. Nagesh, with Advocates Abhay Chattopadhyay, Udipto Koushik S., Kumar Shubham, and Shouryaditya, Akshay Sharma