# In the matter of Leading  Hotels Limited C.P. No. IB-1053 (PB)-2020

> NCLT judgment dated 2021-06-25. Citation: TCN-2021-NCLT-01917. Citron Strategies Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 Jun 2021
- **Citation:** TCN-2021-NCLT-01917
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/leading-hotels-limited-cp-no-ib-1053-pb-2020-729d6445

## Summary

### Background

Citron Strategies Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Leading Hotels Limited, alleging default on a financial debt. The applicant claimed to have provided loans to the corporate debtor in the form of Inter Corporate Deposits (ICDs). The corporate debtor sought extensions for repayment, which were initially granted but later denied. The applicant contended that the corporate debtor failed to repay the debt amount, leading to the filing of the application.

## Facts

Citron Strategies Private Limited (the applicant) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Leading Hotels Limited (the corporate debtor). The applicant claimed to have extended loans to the corporate debtor in the form of Inter Corporate Deposits (ICDs). The initial loan of Rs. 65,00,000/- was given on 23.04.2015 for a period of 91 days, with a letter of undertaking issued by the corporate debtor. Subsequently, another loan of Rs. 65,00,000/- was provided. The corporate debtor requested extensions for repayment, which were initially granted. The corporate debtor then requested to merge both ICDs amounting to Rs. 1,30,00,000/- and sought an extension of 91

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## Issues and analysis

### Issue 1: Whether a default has occurred with …

**Ratio:** The Hon'ble Supreme Court in Innoventive Industries Ltd. Vs. ICICI Bank and Anr.(2018) 1

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**Reasoning:** The court considered the submissions and documents on record and was convinced that a

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**Interpretation:** The Supreme Court's judgment in Innoventive Industries clarifies that the

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**Application:** The court applied the principle from Innoventive Industries to the facts of the

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** Citron Strategies…
- **Respondents:** Leading Hotels…

## Timeline

- **2015-04-23 — Initial…**: Citron Strategies Private Limited gave a loan of Rs. 65,00,000/- to Leading Hotels…
- **2018-07-18 — Additiona…**: Citron Strategies Private Limited provided an additional loan of Rs. 65,00,000/- to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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