# In the matter of DISHA INFRASPACE SOLUTIONS PRIVATE LIMITED

> NCLT judgment dated 2025-10-31. Citation: TCN-2025-NCLT-01614. Northern Arc Capital Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 Oct 2025
- **Citation:** TCN-2025-NCLT-01614
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/disha-infraspace-solutions-private-limited-b1cad7cc

## Summary

### Background

Northern Arc Capital Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Disha Infraspace Solutions Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed default on three loan facilities.

## Facts

Northern Arc Capital Limited, the Financial Creditor, filed a Section 7 petition against Disha Infraspace Solutions Private Limited, the Corporate Debtor.

The Corporate Debtor availed three distinct credit facilities from the Financial Creditor under Facility Agreements dated 25.07.2019, 02.12.2019, and 23.09.2020, aggregating to Rs.2,93,79,400/-.

The Corporate Debtor defaulted in servicing the debt, and as of 28.07.2023, the total outstanding stood at Rs.2,66,31,190/-, inclusive of principal and contractual interest.

The Financial Creditor issued notices of default and recall, but no payment was made.

The Corporate Debtor argued that the defaults fell within the Section 10A embargo period (COVID-19) and that the petition was maliciously filed.

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## Issues and analysis

### Issue 1: Whether the alleged defaults fall within the prohibition contained in Section 10A of the Insolvency …

**Ratio:** Section 10A of the Code provides that no application shall ever be filed for initiation

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**Reasoning:** The legislative intent behind this provision was to protect businesses that suffered

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**Interpretation:** The Tribunal interpreted Section 10A to mean that while CIRP cannot be

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**Application:** The Tribunal found that the Record of Default certified by NeSL for the second

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Northern Arc…
- **Respondents:** Disha Infraspace…
- **Other parties:** M. Rajk…; Nalini Ra…; +1 more
- **Advocates:** Mohit K…; Alpa…

## Timeline

- **2019-07-25 — First Term Loan…**: First term loan sanctioned to the Corporate Debtor vide sanction letter dated 25.07.2019…
- **2019-12-02 — Additional Facility…**: Financial Creditor sanctioned a further sum of Rs.1,00,00,000/- vide sanction letter…

## 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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