# In the matter of Ansal Properties and Infrastructure Limited

> NCLT judgment dated 2023-09-18. Citation: TCN-2023-NCLT-01560. Indian Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 18 Sept 2023
- **Citation:** TCN-2023-NCLT-01560
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ansal-properties-and-infrastructure-limited-ae6c3555

## Summary

### Background

Indian Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Ansal Properties and Infrastructure Limited. The bank had sanctioned a term loan of Rs. 150 Crore to the respondent on 10.09.2013 for the Serene Residency Group Housing Project. The applicant bank initiated the present proceeding under Section 7 of the IBC 2016 claiming the default amount of Rs.2,01,78,08,222.25/- along with interest.

## Facts

Indian Bank, the applicant, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Ansal Properties and Infrastructure Limited, the respondent, seeking to initiate CIRP. The bank had sanctioned a term loan of Rs. 150 Crore to the respondent on 10.09.2013 for the 'Serene Residency Group Housing Project' at Sector ETA II, Greater Noida. The estimated project cost was Rs. 528 Crore. The interest rate was 4.50% (floating). The applicant bank claimed a default amount of Rs. 2,01,78,08,222.25/- along with interest. The respondent is a company incorporated on 30.06.1967. The court noted that CIRP had already been initiated against the respondent, and a moratorium was in place under Section 14 of the Code. NCLAT had confined the CIRP to the

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## Issues and analysis

### Issue 1: Whether there is any agreement between the bank and the Corporate Debtor to permit the latter to …

**Ratio:** The principle of specific performance of contracts and the fiduciary duty of borrowers to

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**Reasoning:** The court sought clarification on whether the funds released by the bank were

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**Interpretation:** This relates to the interpretation of the loan agreement and whether it

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**Application:** If the agreement specified that the funds were solely for the 'Serene Residency

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Indian…
- **Respondents:** M/s. Ansal…

## Timeline

- **1967-06-30 — Incorporation of…**: M/s Ansal Properties and…
- **2013-09-10 — Loan Sanc…**: Indian Bank sanctioned a Term Loan of Rs.150 Crore to the Respondent for the Serene…

## 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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