# In the matter of BAREILLY HIGHWAYS PROJECT LIMITED

> NCLT judgment dated 2024-09-23. Citation: TCN-2024-NCLT-00573. The case involves an appeal against the order of the National Company Law Tribunal (NCLT), New…

- **Court:** NCLT
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-NCLT-00573
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bareilly-highways-project-limited-c17e499a

## Summary

### Background

The case involves an appeal against the order of the National Company Law Tribunal (NCLT), New Delhi, which admitted a Section 7 application filed by the State Bank of India (SBI) against Bareilly Highways Project Limited, the Corporate Debtor (CD). The CD was constituted as a Special Purpose Vehicle (SPV) for a National Highway Project. SBI sanctioned financial facilities to the CD in 2010. Lenders agreed to extend a loan of ₹1,350 Crore. The loan account was classified as a Non-Performing Asset (NPA) in 2017. The CD submitted a settlement proposal in 2020, which was not accepted. SBI filed the Section 7 application in 2023 for a default of ₹1409.72 Crore. The CD invoked arbitration against NHAI for a claim of ₹9819.18 Crores. The NCLT admitted the Section 7

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## Facts

Bareilly Highways Project Limited (the Corporate Debtor or CD) was constituted as a Special Purpose Vehicle (SPV) for a National Highway Project. State Bank of India (SBI) sanctioned financial facilities to the CD via a sanction letter dated 15.11.2010. Lenders agreed to extend a loan aggregating to ₹1,350 Crore on 16.12.2010. A Facility Agreement was entered on 16.12.2010, later modified by SBI. The loan account of the CD was classified as a Non-Performing Asset (NPA) on 26.07.2017. The National Highways Authority of India (NHAI) issued a termination notice to the CD on 03.05.2019. The CD submitted a settlement proposal to the lenders in 2020, which was not accepted. SBI filed a Section 7 application on 15.04.2023, claiming a default of ₹1409.72 Crore. The date of

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## Issues and analysis

### Issue 1: Whether the NCLT was justified in admitting the Section 7 application filed by SBI against the …

**Ratio:** The pendency of arbitration proceedings does not prevent the Adjudicating Authority from

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**Reasoning:** The Adjudicating Authority cannot be prevented by a hypothetical assumption that the

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**Interpretation:** The interpretation of the law is that the Adjudicating Authority should not be

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**Application:** In this case, the debt and default were admitted by the Corporate Debtor.

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…; +2 more
- **Appellants:** Nakul Bh…
- **Respondents:** Bareilly Highways…; National Asset…

## Timeline

- **2010-06-22 — Concession Ag…**: CD entered into a Concession agreement with…
- **2010-12-16 — Term Loan G…**: SBI and Union Bank of India granted a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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