# In the matter of Amit Arora Vs. Tourism Finance Corporation of India & Anr. Company Appeal (AT)(Insolvency) No. 60 of 2021

> NCLAT judgment dated 2022-02-10. Citation: TCN-2022-NCLAT-00635. This case involves an appeal filed by Amit Arora, the suspended director of Aryavir Buildcon…

- **Court:** NCLAT
- **Order date:** 10 Feb 2022
- **Citation:** TCN-2022-NCLAT-00635
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-arora-vs-tourism-finance-corporation-of-india-anr-company-appeal-1cf792a8

## Summary

### Background

This case involves an appeal filed by Amit Arora, the suspended director of Aryavir Buildcon Private Limited, against an order passed by the National Company Law Tribunal (NCLT), New Delhi. The NCLT admitted an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by Tourism Finance Corporation of India (TFCI) and initiated the Corporate Insolvency Resolution Process (CIRP) against Aryavir Buildcon Private Limited. The appellant challenged this order, arguing that TFCI was merely seeking to enforce a security interest and that no actual default had occurred.

## Facts

Aryavir Buildcon Private Limited (Corporate Debtor) entered into an operating agreement with Marriott Hotel on 2012-02-17 and constructed a 134-room hotel in Amritsar, which began operations in mid-2017. The Corporate Debtor obtained a loan of Rs. 50 crore from Infrastructure Leasing and Financial Services Limited (ILFS), which was later assigned to Tourism Finance Corporation of India (TFCI) in 2018. On 2018-03-07, TFCI issued a sanction letter to the Corporate Debtor for refinancing the Rs. 50 crore loan, which was accepted. A loan agreement was executed on 2018-03-28, stipulating repayment until 2031-01-15, and shares of the Corporate Debtor were pledged to TFCI as security. On 2019-11-20, the Corporate Debtor signed a mandate for TFCI to find buyers for the hotel

…

## Issues and analysis

### Issue 1: Whether TFCI is a financial …

**Ratio:** The Hon'ble Supreme Court has held that disbursement to the Corporate Debtor against the

…

**Reasoning:** The NCLAT determined that TFCI had disbursed a loan of Rs. 50 crores to Aryavir Buildcon

…

**Interpretation:** The interpretation of 'financial creditor' under the IBC requires a direct

…

**Application:** In this case, TFCI provided a loan of Rs. 50 crores to Aryavir Buildcon Private

…

## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** Amit A…
- **Respondents:** Aryavir Buildcon…; Tourism Finance…
- **Advocates:** Virender…; Eshna K…; +9 more

## Timeline

- **2012-02-17 — Operating Ag…**: Operating agreement executed between Marriott…
- **2017-06-01 — Hotel Operatio…**: 134-room hotel in Amritsar, constructed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/amit-arora-vs-tourism-finance-corporation-of-india-anr-company-appeal-1cf792a8