# In the matter of Auromatrix Hotels Private Limited IBA-436-2020

> NCLT judgment dated 2021-04-08. Citation: TCN-2021-NCLT-02434. The case pertains to an Insolvency and Bankruptcy Application (IBA/436/2020) filed under…

- **Court:** NCLT
- **Order date:** 8 Apr 2021
- **Citation:** TCN-2021-NCLT-02434
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/auromatrix-hotels-private-limited-iba-436-2020-08da11e4

## Summary

### Background

The case pertains to an Insolvency and Bankruptcy Application (IBA/436/2020) filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Edelweiss Asset Reconstruction Company Limited (Financial Creditor) against Auromatrix Hotels Private Limited (Corporate Debtor). The Financial Creditor initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in payment of Rs. 51,05,90,359/-. The Corporate Debtor had obtained loan facilities from Axis Bank and Punjab National Bank (PNB) Housing & Finance Limited (Assignor Banks). The Financial Creditor acquired the outstanding dues from the Assignor Banks under a Deed of Assignment.

## Facts

Auromatrix Hotels Private Limited (Corporate Debtor) defaulted on a payment of Rs. 51,05,90,359/- to Edelweiss Asset Reconstruction Company Limited (Financial Creditor). The Corporate Debtor had previously obtained loan facilities from Axis Bank and Punjab National Bank (PNB) Housing & Finance Limited (Assignor Banks). On 22.12.2012, the Corporate Debtor availed an overdraft loan facility from Axis Bank for Rs. 4,30,00,000/- and executed security documents. The Corporate Debtor acknowledged a debt of Rs. 44,09,28,292.87 on 25.05.2015 but failed to repay it, leading to the account being classified as a Non-Performing Asset (NPA) on 31.12.2015. PNB Housing & Finance Limited sanctioned Rs. 13,93,69,297/- at 13.25% interest, but the Corporate Debtor failed to

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## Issues and analysis

### Issue 1: Whether the debt falls within the definition of a 'Financial Debt' as defined under Section 5 (8) …

**Ratio:** The legal principle applied is the definition of 'Financial Debt' under Section 5 (8) of

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**Reasoning:** The Tribunal reasoned that based on the documents presented, the debt indeed falls within

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**Interpretation:** The interpretation of 'Financial Debt' involves examining whether the debt was

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**Application:** In this specific case, the Tribunal applied the definition of 'Financial Debt'

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## Parties

- **Judges:** R. Sucha…; B. ANIL…
- **Appellants:** Edelweiss Asset…
- **Respondents:** AUROMATRIX HOTELS…

## Timeline

- **2012-12-22 — Overdraft…**: Corporate Debtor availed overdraft loan facility from Axis Bank to the tune of…
- **2015-05-25 — Debt Acknowl…**: Corporate Debtor acknowledged debt of…

## 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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