# In the matter of Topworth Tollways (Ujjain) Pvt. Ltd. C.P. (IB) No. 4106-NCLT-MB-2018

> NCLT judgment dated 2020-10-09. Citation: TCN-2020-NCLT-00414. Bank of Baroda filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Oct 2020
- **Citation:** TCN-2020-NCLT-00414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/topworth-tollways-ujjain-pvt-ltd-cp-ib-no-4106-nclt-mb-2018-91665b63

## Summary

### Background

Bank of Baroda filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Topworth Tollways (Ujjain) Pvt. Ltd. for initiating Corporate Insolvency Resolution Process (CIRP) due to a default in payment of a financial debt amounting to Rs. 50,90,50,092/-. The petitioner sanctioned a term loan of Rs. 45,00,00,000/- to the Corporate Debtor on 13/12/2010, of which Rs. 34,90,53,689/- was availed. The Corporate Debtor executed security documents, including mortgages and charges over its assets. The Corporate Debtor defaulted on interest payments on 31/01/2016 and principal installments on 31/03/2016.

## Facts

Bank of Baroda (formerly Dena Bank) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Topworth Tollways (Ujjain) Pvt. Ltd. The petition sought to initiate Corporate Insolvency Resolution Process (CIRP) due to a default in payment of a financial debt. The petitioner had sanctioned a term loan of Rs. 45,00,00,000/- to the Corporate Debtor on 13/12/2010, of which Rs. 34,90,53,689/- was availed. The Corporate Debtor executed security documents, including mortgages and charges over its assets. The Corporate Debtor defaulted on interest payments on 31/01/2016 and principal installments on 31/03/2016. The Corporate Debtor raised objections, including incorrect address, payment of fees by Oriental Bank of Commerce, lack of authority,

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## Issues and analysis

### Issue 1: Whether the incorrect address of the Corporate Debtor and payment of fees by Oriental Bank of …

**Ratio:** Mention of an incorrect address in the Form and payment of fees by Oriental Bank of

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**Reasoning:** The NCLT reasoned that the Corporate Debtor was present before the court through counsel,

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**Interpretation:** This clarifies that minor procedural defects do not invalidate a petition if

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**Application:** The NCLT applied this principle by allowing the amendment to rectify the name

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Bank of B…
- **Respondents:** Topworth Tollways…; Topworth Tollways…

## Timeline

- **2010-12-13 — Loan Sanc…**: Bank of Baroda sanctioned a term loan of Rs. 45,00,00,000/- to Topworth Tollways (Ujjain)…
- **2016-01-31 — Default on Interest…**: 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)

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