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Informist, Monday, Jun. 29, 2026

 

NEW DELHI – The Supreme Court Monday sent IIFL Finance Ltd., Paramvir Developers Pvt. Ltd. to mediation on a case wherein the latter has sought discharge from all liabilities in relation to the loan facilities availed by it. The apex court appointed former Supreme Court judge A.S. Oka as the mediator and listed the case for hearing in September.

 

The case has its genesis from the Mordani Group, which includes companies like Paramvir Developers, Paramvir Real Estate Pvt. Ltd. and others, availing loan facilities from IIFL Finance and IIFL Home Finance Ltd. for the development of their real estate projects such as La Maison, Signature Suits, and Celyn Project. Thereafter, a framework agreement was signed between the parties which recorded a composite resolution of all loan facilities. According to this agreement, the Mordani Group was required to perform its obligations by Dec. 31, 2024, and if it failed, the composite settlement and the agreement between the parties will automatically and forthwith come to an end and stand revoked, cancelled and terminated without any act of the parties.  

 

Admittedly, the Mordani Group did not comply with its obligations under the agreement, hence, the same stood terminated. The Mordani Group said that despite availing the benefit under the framework agreement, IIFL Home Finance continued the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and secured a notice of possession. Despite the terms and conditions of the agreement and the security provided for transferring two projects to a new developer Vensco Developers LLP. under the agreement, action has been initiated and precipitated by IIFL Home Finance, said the Mordani group.

 

Thereafter, Mordani Group companies filed a suit in the Bombay High Court alleging that IIFL Home Finance has begun taking precipitative steps and taken possession of the secured asset, and there is a purported failure on the part of the IIFL companies in complying with the obligations under the framework agreement. The Mordani Group companies sought to restrain IIFL Finance, IIFL Home Finance from dealing with, transferring, or creating third-party rights in respect of the group's three projects and from not enforcing the security under the loan agreements.  

 

To the suit's reply, IIFL Finance and IIFL Home Finance filed an application seeking rejection of the Mordani Group companies' suit on non-compliance with certain sections of the Commercial Courts Act, 2015, the Specific Relief Act, 1963 and The Securitisation And Reconstruction Of Financial Assets and Enforcement Of Security Interest Act, 2002. In May, the high court rejected IIFL Finance and IIFL Home Finance's petition, against which the companies moved the apex court.

 

At 1214 IST, the shares of IIFL Finance Ltd. were down 2.8% at INR 495.40 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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