# In the matter of BKR Hotels and Resorts Pvt. Ltd. CP-472-(IB)-2017

> NCLT judgment dated 2018-08-14. Citation: TCN-2018-NCLT-00940. The case involves an application filed by Indian Bank, the Financial Creditor, under Section 7…

- **Court:** NCLT
- **Order date:** 14 Aug 2018
- **Citation:** TCN-2018-NCLT-00940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bkr-hotels-and-resorts-pvt-ltd-cp-472-ib-2017-6109513d

## Summary

### Background

The case involves an application filed by Indian Bank, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against BKR Hotels and Resorts Private Limited, the Corporate Debtor. The application was initially admitted by the NCLT on 30.05.2017, initiating CIRP against the Corporate Debtor. This order was challenged by the Director of the Corporate Debtor in Company Appeal (AT) (Insolvency) No. 123/2017, which was dismissed by NCLAT on 20.11.2017. A Civil Appeal No.1616/2018 was then filed before the Supreme Court by the Director of the Corporate Debtor. The Supreme Court set aside the NCLAT order and directed a de novo consideration of the application after issuing notice to

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## Facts

Indian Bank, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against BKR Hotels and Resorts Private Limited, the Corporate Debtor. The Financial Creditor claimed an outstanding amount of Rs.43,47,83,472/- as of 01.03.2017. The Financial Creditor had sanctioned a Fresh Term Loan of Rs.29 Crores on 05.01.2013 for the acquisition and modernisation of "Ooty Gate Hotels". The loan was repayable in 78 equal monthly instalments of Rs.37.18 Lakhs each after a holiday period of 12 months. The Corporate Debtor executed a Medium Term Loan Agreement on 07.01.2013 and a Single Demand Promissory Note dated 07.01.2013 in favour of the Financial Creditor. The Corporate Debtor defaulted in repayment,

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the I&B Code, 2016, …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court considered the arguments and evidence presented by both parties, including case

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**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

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**Application:** The court determined that the Financial Creditor had met the requirements of

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Indian…
- **Respondents:** B.K.R. Hotels and…; BKR HOTELS AND…
- **Advocates:** V.V. Siva…; Nesar A…

## Timeline

- **2013-01-05 — Loan Sanc…**: Financial Creditor sanctioned…
- **2013-01-07 — Loan Agre…**: Medium Term Loan Agreement executed between…

## 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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