# In the matter of IDBI Bank Ltd. vs. ARM Infra & Utilities Pvt. Ltd.

> NCLAT judgment dated 2025-07-03. Citation: TCN-2025-NCLAT-00335. The appeal arises from an order dated 16.06.2023 by the NCLT, Mumbai Bench, dismissing a…

- **Court:** NCLAT
- **Order date:** 3 Jul 2025
- **Citation:** TCN-2025-NCLAT-00335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/idbi-bank-ltd-vs-arm-infra-utilities-pvt-ltd-fae50893

## Summary

### Background

The appeal arises from an order dated 16.06.2023 by the NCLT, Mumbai Bench, dismissing a Section 7 petition filed by IDBI Bank against ARM Infra & Utilities Pvt. Ltd., the Corporate Guarantor, due to the default falling within the prohibited period under Section 10A of the IBC.

## Facts

IDBI Bank sanctioned credit facilities to Wire and Wireless (India) Ltd. (later Siti Networks Ltd.), secured by a corporate guarantee from Zee Entertainment Enterprises Ltd.

ARM Infra & Utilities Pvt. Ltd. executed corporate guarantees in favor of IDBI Bank on 31.12.2014 and 29.02.2016, covering the obligations of Siti Networks Ltd.

Siti Networks Ltd.'s account was declared NPA on 31.01.2020.

IDBI Bank issued a recall notice on 18.02.2021 and a formal demand notice on 05.03.2021 to ARM Infra & Utilities Pvt. Ltd., invoking the corporate guarantees.

IDBI Bank filed a Section 7 petition on 11.01.2023, which was dismissed by the Adjudicating Authority on 16.06.2023 due to the default falling within the Section 10A prohibited period.

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## Issues and analysis

### Issue 1: Whether the second invocation dated 09.12.2022 reflects a fresh default with a fresh cause of …

**Ratio:** The second invocation was based on a new and comprehensive computation dated 08.12.2022,

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**Reasoning:** The Adjudicating Authority failed to consider the second invocation and its relevance to

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**Interpretation:** A fresh invocation after the Section 10A period, based on a broader default,

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**Application:** The Tribunal found that the second invocation was valid, independent, and

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** IDBI Bank…
- **Respondents:** ARM Infra &…
- **Advocates:** Sudhir M…; Sidhartha…; +6 more

## Timeline

- **2008-11-24 — Sanction of Cash Credit…**: IDBI Bank sanctioned a Cash Credit facility of Rs.25 crore to Wire and Wireless (India)…
- **2014-12-31 — Corporate Gu…**: ARM Infra & Utilities Pvt. Ltd. executed a…

## 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)

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