# In the matter of Yamuna Infradevelopers Pvt. Ltd. (IB)-479(ND)-2019

> NCLT judgment dated 2019-05-01. Citation: TCN-2019-NCLT-03580. Oriental Bank of Commerce, as a Financial Creditor, initiated the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 1 May 2019
- **Citation:** TCN-2019-NCLT-03580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yamuna-infradevelopers-pvt-ltd-ib-479nd-2019-9fca1115

## Summary

### Background

Oriental Bank of Commerce, as a Financial Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Yamuna Infradevelopers Pvt. Ltd. due to the corporate debtor's inability to liquidate its debts. The corporate debtor, engaged in real estate and construction, was sanctioned a term loan of Rs. 10 crores for participating in an auction for mineral blocks in Haryana. The corporate debtor executed loan documents agreeing to repay the principal in 66 equal monthly installments commencing in 2016. The loan was secured by an equitable mortgage of commercial land and building. The corporate debtor failed to maintain financial discipline, leading to the account being declared an NPA. A notice under the SARFAESI Act was issued.

## Facts

Oriental Bank of Commerce (OBC) sanctioned a term loan of Rs. 10 crores to Yamuna Infradevelopers Pvt. Ltd. for participating in an auction for mineral blocks in Haryana. Yamuna Infradevelopers executed loan documents agreeing to repay the principal amount in 66 equal monthly installments of Rs. 15.15 lakhs commencing in 2016. The loan was secured by an equitable mortgage of a commercial land and building. Yamuna Infradevelopers failed to maintain financial discipline and was irregular in repaying the monthly installments. OBC declared the account an NPA and issued a notice under the SARFAESI Act. The outstanding dues amounted to Rs. 2,23,10,216/-. Despite repeated requests, Yamuna Infradevelopers failed to liquidate or reduce the liability. Yamuna Infradevelopers

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor for initiating Corporate Insolvency Resolution …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 (IBC) provides a framework for the resolution of

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**Reasoning:** The court considered the documents and facts presented by the Financial Creditor,

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**Interpretation:** The IBC is interpreted to facilitate timely resolution of insolvency and

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**Application:** Based on the facts presented, the court found that the Financial Creditor had

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** Oriental Bank of…
- **Respondents:** Yamuna Infradevelo…

## Timeline

- **2016-01-01 — Loan Agre…**: Yamuna Infradevelopers agreed to repay the principal in 66 equal monthly installments…
- **2018-02-16 — Debt Balance Confirmatio…**: Yamuna Infradevelopers confirmed the…

## Legal provisions

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

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