# In the matter of Aashiyana Infrastructure Development Pvt. Ltd.

> NCLT judgment dated 2024-02-27. Citation: TCN-2024-NCLT-02377. The case involves an application filed by Small Industries Development Bank of India (SIDBI),…

- **Court:** NCLT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLT-02377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aashiyana-infrastructure-development-pvt-ltd-c8223222

## Summary

### Background

The case involves an application filed by Small Industries Development Bank of India (SIDBI), the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Aashiyana Infrastructure Development Private Limited, the Corporate Debtor. SIDBI claims that the Corporate Debtor defaulted on an outstanding amount of Rs. 10,20,76,448/- as of January 10, 2023. The Corporate Debtor denies the allegations, stating that a settlement was reached between the parties and a Debt Settlement Agreement was executed. SIDBI sanctioned term loans to the Corporate Debtor in 2013 and 2015, which later turned into Non-Performing Assets (NPA). A Debt Settlement Agreement (DSA) was entered into in 2019,

…

## Facts

Small Industries Development Bank of India (SIDBI) sanctioned a term loan of Rs. 1500 lakhs to Aashiyana Infrastructure Development Private Limited on 06/11/2013. SIDBI further sanctioned a term loan of Rs. 550 lakhs on 05/11/2015. The term loans turned into Non-Performing Assets (NPA) on 06/01/2017. A Debt Settlement Agreement (DSA) was entered into on 10/10/2019, pursuant to an order dated 04/09/2019 passed by Ld. DRT, Jaipur. The Corporate Debtor failed to fulfill its commitment under the DSA, paying only Rs. 160.98 lakhs. On 30/09/2021, the Corporate Debtor approached SIDBI to extend the timeline for payments, which was extended till 30/09/2021. SIDBI sanctioned an OTS-NDND 2022 for Rs.2,32,15,500/- on 19/01/2022, with a deadline of 31/03/2022. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The ratio is that the existence of a Debt Settlement Agreement or an OTS scheme does not

…

**Reasoning:** The court reasoned that the application is founded on the original Financial Debt which

…

**Interpretation:** The interpretation is that the IBC allows for the initiation of CIRP based on

…

**Application:** In this case, the Corporate Debtor failed to fulfill its commitments under both

…

## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Small Industries…
- **Respondents:** AASHIYANA…; M/s. AASHIYANA…

## Timeline

- **2013-11-06 — Term Loan San…**: SIDBI sanctioned a term loan of Rs.…
- **2015-11-05 — Further Term Loan…**: SIDBI sanctioned a further term loan of…

## 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-division-bench-court-i-chenn/aashiyana-infrastructure-development-pvt-ltd-c8223222