# In the matter of Air Travel Enterprises India Ltd Vs. Union Bank of India & Ors. Company Appeal (AT) (INS) No. 993 of 2020

> NCLAT judgment dated 9 Sept 2021. Citation: TCN-2021-NCLAT-00101. The appeal was filed by Air Travel Enterprises India Ltd. (Appellant) against an order of…

- **Court:** NCLAT
- **Order date:** 9 Sept 2021
- **Citation:** TCN-2021-NCLAT-00101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/air-travel-enterprises-india-ltd-vs-union-bank-of-india-ors-company-appeal-3b29652f

## Summary

### Background

The appeal was filed by Air Travel Enterprises India Ltd. (Appellant) against an order of admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, filed by Union Bank of India (Respondent No.1/Financial Creditor) before the NCLT, Kochi Bench.

## Facts

Air Travel Enterprises India Ltd., the Appellant, is a major shareholder of Green Gateway Leisure Ltd., the Corporate Debtor. The Corporate Debtor operates in the travel and tourism sector and obtained leasehold rights over 55.33 acres of land from Bekal Resorts, owned by the Government of Kerala. The Corporate Debtor was formed as a Special Purpose Vehicle (SPV) for the implementation and operation of a resort project at Bekal.

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by…

**Ratio:** The NCLAT held that the promise to pay under the OTS Agreement, entered into by the…

**Reasoning:** The NCLAT considered the date of NPA as September 30, 2015, and the Section 7 application…

**Interpretation:** The court interpreted **Section 18 of the Limitation Act, 1963**, in light of…

**Application:** Given that the Corporate Debtor serviced the loan until June 2017 and…

## Parties

- **Judges:** Shreesha…
- **Advocates:** For the appellant:…; PCS…; +6 more

## Timeline

- **2010 — Financial Ass…**: Corporate Debtor obtained ₹20 Crores from State Bank of India and ₹25 Crores from Union…
- **October 22, 2013 — Agreement for…**: Agreement for granting an additional term loan of ₹24 Crores was agreed upon by lenders,…

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