# In the matter of Uday Estates Pvt. Ltd. CP (IB) 393 (ND)-2021

> NCLT judgment dated 2021-11-15. Citation: TCN-2021-NCLT-00508. The Asset Reconstruction Company (India) Ltd. filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 15 Nov 2021
- **Citation:** TCN-2021-NCLT-00508
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uday-estates-pvt-ltd-cp-ib-393-nd-2021-81d2dd39

## Summary

### Background

The Asset Reconstruction Company (India) Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Uday Estates Private Limited, the Corporate Debtor. The Financial Creditor claimed that the Corporate Debtor had availed financial facilities from Bank of Baroda in 2009 and 2011, amounting to Rs. 73 crore. The Corporate Debtor failed to adhere to the terms of payment, leading to the account being declared a Non-Performing Asset (NPA) on 31.12.2011. The Financial Creditor contended that the Corporate Debtor acknowledged the debt in its balance sheets and through a

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## Facts

In 2009, M/s Uday Estates Private Limited (Corporate Debtor) availed a financial facility of Rs. 60 crore from Bank of Baroda under a Term Loan Agreement (Term Loan-I) dated 28.07.2009 for land and construction/development of Hotel "De Aqua" in Delhi. In 2011, the Corporate Debtor availed another financial facility of Rs. 13 crore from Bank of Baroda under a Term Loan Agreement (Term Loan-II) dated 08.01.2011 for the increased cost of the Hotel Project and internal designing/upgradation. The total secured debt granted by Bank of Baroda to the Corporate Debtor was Rs. 73 crore. Bank of Baroda disbursed Rs. 60 crore at the contractual rate of interest BPLR + 1% per annum towards Term Loan-I and Rs. 13 crore at the rate of interest 5% above Base Rate per annum

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 18 of the Limitation Act, 1963, provides that where, before the expiration of the

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**Reasoning:** The NCLT considered the Corporate Debtor's acknowledgements of debt in its balance sheets

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**Interpretation:** The NCLT interpreted Section 18 of the Limitation Act, 1963, to mean that an

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**Application:** The NCLT applied the ratio to the facts of the case and concluded that the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Appellants:** Asset Reconstructi…
- **Respondents:** M/S UDAY ESTATES…

## Timeline

- **2009-01-01 — Corporate Debtor…**: In 2009, the Corporate Debtor availed financial facilities for an amount of Rs. 60 crore…
- **2011-01-01 — Corporate Debtor availed another financial…**: In 2011, the Corporate Debtor availed another financial facility from Bank of Baroda for…

## Legal provisions

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

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