# In the matter of Green Gateway Leisure Ltd. IBA/01/KOB/2020

> NCLT judgment dated 2020-10-15. Citation: TCN-2020-NCLT-00383. Union Bank of India, the financial creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 15 Oct 2020
- **Citation:** TCN-2020-NCLT-00383
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/green-gateway-leisure-ltd-iba01kob2020-9ad69d99

## Summary

### Background

Union Bank of India, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Green Gateway Leisure Ltd, the corporate debtor, due to a default in payment of ₹32,39,45,078. The corporate debtor's project, a five-star deluxe beach resort, faced cost overruns and delays in loan disbursement, leading to financial difficulties. The applicant sought to implead the guarantors of the corporate debtor as respondents. The corporate debtor contended that the banks had settled their claims under One Time Settlement (OTS) and that the application suppressed material facts.

## Facts

Union Bank of India granted a term loan of ₹25,00,00,000 to M/s Green Gateway Leisure Ltd on 12.06.2010, which was renewed and restructured multiple times. The corporate debtor defaulted on payments, with an outstanding amount of ₹32,39,45,078 as of 30.11.2019. The applicant issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 29.12.2017, classifying the account as a Non-Performing Asset (NPA). The applicant filed an Interlocutory Application IA/46/KOB/2020 to implead the guarantors as respondents, which was allowed on 24.02.2020. The corporate debtor argued that the banks had settled their claims under One Time Settlement (OTS), with part payments made. The corporate debtor also contended that the application suppressed material facts and that the amount

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## Issues and analysis

### Issue 1: Whether the applicant granted financial assistance to the Corporate Debtor, the same was disbursed …

**Ratio:** The adjudicating authority is only to satisfy that the default has occurred and that the

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**Reasoning:** The Tribunal relied on the precedents set by the Supreme Court in “Innoventive Industries

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**Interpretation:** This principle emphasizes the importance of establishing a clear default by the

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**Application:** The applicant produced the statement of account for the loan account which

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** Union Bank of…
- **Respondents:** M/s Green Gateway…

## Timeline

- **2010-06-12 — Loan Gra…**: Union Bank of India granted a term loan of…
- **2012-12-14 — Agreement with…**: The Corporate Debtor executed an agreement with Starwood Asia Pacific Hotels and Resorts…

## 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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