# In the matter of Kewal Krishan Sharma vs. Navneet Gupta and Anr.

> NCLAT judgment dated 2025-11-06. Citation: TCN-2025-NCLAT-00559. The appeal arises from an order by the Adjudicating Authority, Chandigarh Bench, admitting a…

- **Court:** NCLAT
- **Order date:** 6 Nov 2025
- **Citation:** TCN-2025-NCLAT-00559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kewal-krishan-sharma-vs-navneet-gupta-and-anr-1f1501d3

## Summary

### Background

The appeal arises from an order by the Adjudicating Authority, Chandigarh Bench, admitting a Section 7 application filed by U.V. Asset Reconstruction Company Limited (UVARC) against Majestic Hotels Limited, initiating Corporate Insolvency Resolution Process (CIRP).

## Facts

Majestic Hotels Limited availed multiple term loans from financial institutions, including Tourism Finance Corporation of India (TFCI) and Industrial Finance Corporation of India (IFCI), to construct and run its hotel.

IFCI classified the loan account as Non-Performing Asset (NPA) on 30.06.2012, followed by TFCI on 30.09.2012.

U.V. Asset Reconstruction Company Limited (UVARC) acquired the loans and underlying securities of both IFCI and TFCI on 12.12.2017.

A settlement-cum-restructuring plan was agreed upon, including a Working Capital Term Loan (WCTL) to assist the revival of hotel operations.

The settlement terms provided for a 45-day cure period from the due date before any event of default could be declared.

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## Issues and analysis

### Issue 1: Whether the Section 7 petition filed by UVARC was maintainable given the provisions of Section 10A …

**Ratio:** Section 10A of the IBC bars the filing of applications for initiation of CIRP for

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**Reasoning:** The NCLAT considered the date of default and whether it fell within the period protected

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**Interpretation:** The NCLAT interpreted Section 10A to protect businesses affected by the

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**Application:** The NCLAT found that the default occurred on 16.03.2020, prior to the

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## Parties

- **Judges:** Ashok Bh…; Indevar P…
- **Appellants:** Kewal Krishan…
- **Respondents:** Majestic Hotels…; Navneet…; +1 more
- **Other parties:** UV Asset Reconstru…; Tourism Finance…; +1 more
- **Advocates:** Gaurav…; Aalok J…; +8 more

## Timeline

- **1991-11-06 — Loan Agre…**: Corporate Debtor entered into a loan agreement with Tourism Finance Corporation of India…
- **2012-06-30 — NPA Classif…**: IFCI classified the loan account…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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