# In the matter of Keti Highway Developers Pvt. Ltd. CP (IB) No. 54-7-NCLT-AHM-2017

> NCLT judgment dated 2017-08-17. Citation: TCN-2017-NCLT-00603. Axis Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 17 Aug 2017
- **Citation:** TCN-2017-NCLT-00603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/keti-highway-developers-pvt-ltd-cp-ib-no-54-7-nclt-ahm-2017-a6bf073e

## Summary

### Background

Axis Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code against Keti Highway Developers Pvt. Ltd. The application was initially filed as a company petition before the High Court of Madhya Pradesh and later transferred to the National Company Law Tribunal (NCLT), Ahmedabad Bench. The application pertains to a term loan of Rs. 55 Crores sanctioned by Axis Bank to Keti Highway Developers for a road development project. The account of the respondent company became a non-performing asset, leading to the bank issuing a demand notice for the outstanding amount.

## Facts

Axis Bank Limited sanctioned a term loan of Rs. 55 Crores to Keti Highway Developers Pvt. Ltd. for the development of the Chandpur-Alirajpur-Kukshi-Barwani Road. The loan agreement was executed, and the terms and conditions were agreed upon. The Respondent Company failed to pay the outstanding dues, and the account became a non-performing asset on 29.11.2013. Axis Bank issued a demand notice on 21.4.2016, claiming an outstanding amount of Rs. 68,07,42,449/- as of 20th April, 2016. The Applicant Bank filed Form-1 before the Tribunal on 5th June, 2017. The Respondent raised objections, including the non-production of vital documents like the Escrow Account Agreement, Concession Agreement, and Substitution Agreement. The Respondent also argued that the presence of an

…

## Issues and analysis

### Issue 1: Whether the Applicant Bank has not produced the vital documents such as Escrow Account Agreement, …

**Ratio:** The production of vital documents is essential for a fair adjudication. Suppression of

…

**Reasoning:** The Adjudicating Authority initially directed the Applicant to file the Escrow Account

…

**Interpretation:** The interpretation is that all relevant documents must be presented to the

…

**Application:** The Applicant's initial failure to file the agreements was rectified by

…

## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** AXIS…
- **Respondents:** Keti Highway…

## Timeline

- **2011-05-22 — General Power of…**: Shri Sumit Sharma, Branch Manager of Axis Bank, Indore, is authorized to file the…
- **2011-10-04 — Substitution A…**: Substitution Agreement dated 4th October, 2011 is entered into between MPRDC, Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/keti-highway-developers-pvt-ltd-cp-ib-no-54-7-nclt-ahm-2017-a6bf073e