# In the matter of New Chennai Township Private Limited CP-636-IB-CB-2017

> NCLT judgment dated 2019-07-05. Citation: TCN-2019-NCLT-02648. The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Jul 2019
- **Citation:** TCN-2019-NCLT-02648
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/new-chennai-township-private-limited-cp-636-ib-cb-2017-614baea5

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by Phoenix ARC Private Limited (Financial Creditor) against New Chennai Township Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor defaulted on repaying a loan amount of ₹412,42,86,369 as of 2017-10-09. The case was adjourned multiple times at the request of the Corporate Debtor, who promised to repay the loan or settle with the Financial Creditor. However, no significant progress was made in settlement talks.

## Facts

Phoenix ARC Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against New Chennai Township Private Limited, the Corporate Debtor, due to a default in repaying a loan of ₹412,42,86,369 as of 2017-10-09. The initial hearing was on 2017-11-10. The Corporate Debtor repeatedly requested adjournments, promising repayment or settlement. The debt was originally sanctioned by Central Bank of India and later assigned to Phoenix ARC Private Limited. Central Bank of India had sanctioned Rental Discounting Facility-I for ₹44.35 Crores on 2011-09-27 and Term Loan-I (LRD) facility to a tune of ₹100 Crores on 2012-03-26. The Corporate Debtor provided an Assignment of Future Rent Receivables and mortgage over land.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 allows for the initiation of CIRP upon the

…

**Reasoning:** The court considered the evidence presented by the Financial Creditor, including the loan

…

**Interpretation:** The legal principle is that if a default is established, and the debt is not

…

**Application:** The Corporate Debtor defaulted on a loan of ₹412,42,86,369 as of 2017-10-09.

…

## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** M/s. Phoenix ARC…
- **Respondents:** M/s. New Chennai…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2017-10-09 — Date of D…**: The Corporate Debtor defaulted on…

## 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)

---

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/new-chennai-township-private-limited-cp-636-ib-cb-2017-614baea5