# In the matter of Dehradun HIghways Projects Ltd. (IB)-725 (ND)-2020

> NCLT judgment dated 2020-09-18. Citation: TCN-2020-NCLT-00592. The case involves an application filed by ICICI Bank Ltd. under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Sept 2020
- **Citation:** TCN-2020-NCLT-00592
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dehradun-highways-projects-ltd-ib-725-nd-2020-2013ce59

## Summary

### Background

The case involves an application filed by ICICI Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Dehradun Highways Project Limited. The corporate debtor was granted a concession by the National Highways Authority of India (NHAI) for the construction, operation, maintenance, and management of a road section. To finance the project, the corporate debtor availed credit facilities from the applicant financial creditor, including rupee term loans and external commercial borrowings. Defaults in payment led to the financial creditor issuing demand notices and eventually classifying the corporate debtor's account as a Non-Performing Asset (NPA).

## Facts

1. National Highways Authority of India (NHAI) granted Dehradun Highways Project Limited (Corporate Debtor) a concession on 2010-02-24 for construction, operation, maintenance, and management of a road section.
2. ICICI Bank Ltd. (Financial Creditor) extended credit facilities to the Corporate Debtor, including a rupee term loan of INR 2700 Million and a sub-limit of USD 60 million as an external commercial borrowing (ECB Facility).
3. The Corporate Debtor requested and the Financial Creditor agreed to extend a rupee term loan aggregating to INR 2700 Million (DHPL RTL-1 Facility).
4. Due to cost overruns, the Financial Creditor sanctioned additional rupee term loans in 2014, with Tranche-A aggregating to INR 313.4 Million and Tranche-B aggregating to INR 706.1 Million.
5.

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## Issues and analysis

### Issue 1: Whether the debt is …

**Ratio:** Section 18 of the Limitation Act, 1963 states that if, before the expiration of the

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**Reasoning:** The NCLT considered the letter dated 2017-07-18, in which the Corporate Debtor

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**Interpretation:** The court interpreted Section 18 of the Limitation Act to mean that a written

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**Application:** The NCLT applied Section 18 of the Limitation Act to the facts of the case,

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** ICICI Ban…
- **Respondents:** DEHRADUN HIGHWAYS…

## Timeline

- **2010-02-24 — Concession Ag…**: NHAI granted the Corporate Debtor a concession for construction, operation, maintenance,…
- **2015-12-31 — Account Decla…**: The account of the Corporate…

## 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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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/nclt-chandigarh/dehradun-highways-projects-ltd-ib-725-nd-2020-2013ce59