# In the matter of V Hotels Limited Vs. Asset Reconstruction Company(India) Limited CA(AT)(Ins) No.525 of 2019

> NCLAT judgment dated 2019-12-11. Citation: TCN-2019-NCLAT-00032. The 'Asset Reconstruction Company (India) Limited' (Financial Creditor) filed an application…

- **Court:** NCLAT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLAT-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/v-hotels-limited-vs-asset-reconstruction-company-74fe1a3b

## Summary

### Background

The 'Asset Reconstruction Company (India) Limited' (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the 'Corporate Insolvency Resolution Process' against 'V. Hotels Limited' (Corporate Debtor). 'V. Hotels Limited' contested the maintainability of the application, citing a pending matter before the Debt Recovery Appellate Tribunal related to an order passed under the SARFAESI Act, 2002, and writ petitions before the Bombay High Court. The Bombay High Court had restrained the 'Financial Creditor' from taking coercive steps, subject to the 'Corporate Debtor' depositing money. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the application, which was challenged by

…

## Facts

The 'Asset Reconstruction Company (India) Limited' (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against 'V. Hotels Limited' (Corporate Debtor). The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on December 1, 2008. The Financial Creditor is the assignee of Bank of India, one of the original lenders, under a BOI Assignment Agreement dated December 31, 2008. The Corporate Debtor entered into an ECB arrangement for USD 29,000,000 with Abu Dhabi Commercial Bank (ADCB) on June 5, 2003, to repay the loan. In 2008, the bank guarantee issued by Bank of India was invoked by ADCB, and Bank of India made a payment of Rs. 24,49,59,208 on September 2, 2008. Settlement talks were initiated, and

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code was barred by …

**Ratio:** The Limitation Act, 1963, applies to applications filed under Section 7 of the Insolvency

…

**Reasoning:** The court reasoned that the intent of the Insolvency and Bankruptcy Code was not to give

…

**Interpretation:** The interpretation of the Limitation Act in conjunction with the Insolvency and

…

**Application:** In this case, the Corporate Debtor's account was declared NPA on December 1,

…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Respondents:** V Hotels L…; Asset Reconstructi…

## Timeline

- **2002-01-01 — SARFAESI Ac…**: Enactment of the 'Securitisation and Reconstruction of Financial Assets and Enforcement…
- **2003-06-05 — ECB Arran…**: The Corporate Debtor entered into an ECB arrangement for USD 29,000,000 with Abu Dhabi…

---

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/v-hotels-limited-vs-asset-reconstruction-company-74fe1a3b