NCLT Delhi Admits CIRP Pleas by JC Flowers Against Rana Kapoor-Linked RAB Subsidiaries Over ₹260 Crore Default

The Delhi Bench of the National Company Law Tribunal (NCLT) has admitted four CIRP pleas filed by JC Flowers Asset Reconstruction Pvt. Ltd. against subsidiaries of RAB Enterprises (India) Private Limited, a group promoted by Rana Kapoor and Bindu Kapoor. The proceedings have been initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The order, delivered on April 7, 2026, was passed by Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri.

The four companies facing insolvency action are Imagine Habitat Pvt. Ltd., Imagine Residence Pvt. Ltd., Imagine Home Pvt. Ltd. and Imagine Estate Pvt. Ltd., all incorporated under the Companies Act, 2013.

The dispute traces back to 2017, when RAB Enterprises approached Samman Capital Limited, earlier known as Indiabulls Housing Finance Limited, for financial support. Loans amounting to Rs 70 crore and Rs 105 crore were later sanctioned through agreements dated September 5, 2018 and March 29, 2019. These facilities were extended to entities within the RAB group, including the principal borrower, Bliss House Private Limited.

Security for the loans was structured through multiple layers. Rana Kapoor and Bindu Kapoor furnished personal guarantees in favour of the lender, while a Deed of Hypothecation dated March 22, 2019 covered certain assets linked to the borrowing entities.

The loan terms were relatively short, with a six-month tenure and repayment scheduled through equal monthly installments. At the same time, the agreements allowed the lender to act if events occurred that could affect repayment capacity, even before an actual payment default.

It was this clause that came into play. Criminal investigations involving the personal guarantors led the lender to conclude that the financial position of the borrower and its obligors may be adversely affected.

A recall notice followed on March 9, 2020, asking for repayment within five days. When no payment came, another notice was issued on March 14, 2020.

Parallelly, arbitration proceedings were triggered. These culminated in an award dated February 28, 2023, which fixed liability on the principal debtor and its obligors at Rs 1,96,87,24,418 along with interest.

The debt later changed hands. Under an assignment agreement dated March 29, 2025, JC Flowers stepped into the lender's position, acquiring the underlying rights and claims.

Acting on this, the ARC issued a demand notice on September 29, 2025, calling upon the corporate debtors to pay Rs 260.32 crore within seven days. The notice was neither accepted nor complied with.

The companies resisted the insolvency proceedings on several grounds. They argued that merely executing a Deed of Hypothecation did not make them financial debtors or guarantors. They also questioned the tribunal's territorial jurisdiction, denied any default at the time of recall, and contended that the petitions were essentially an attempt to enforce an arbitral award that remains under challenge.

The tribunal did not accept these objections. Looking at the loan agreements and the hypothecation arrangement together, it found that the companies had undertaken obligations that made them liable for repayment of the borrower's dues.

Questions on jurisdiction and limitation were also decided against the respondents. On the material placed before it, the bench concluded that both a financial debt and a default stood established.

With that finding, the tribunal admitted the CIRP pleas and triggered the moratorium under the Code.