# In the matter of BBT Elevated Road Private Limited

> NCLT judgment dated 2023-12-19. Citation: TCN-2023-NCLT-00165. Canara Bank, as the financial creditor, filed a company petition under section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Dec 2023
- **Citation:** TCN-2023-NCLT-00165
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bbt-elevated-road-private-limited-433d91a6

## Summary

### Background

Canara Bank, as the financial creditor, filed a company petition under section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against BBT Elevated Road Private Limited (the corporate debtor) due to a default in repayment of a financial debt amounting to Rs. 174,43,08,341.52.

## Facts

Canara Bank, formerly Syndicate Bank, filed a company petition under section 7 of the Insolvency and Bankruptcy Code, 2016, against BBT Elevated Road Private Limited (the corporate debtor). The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a financial debt default. The total financial debt claimed by Canara Bank as of October 31, 2022, was Rs. 174,43,08,341.52. The corporate debtor was incorporated on February 19, 2014, and had entered into a Concession Agreement with the Kolkata Metropolitan Development Authority (KMDA) on May 28, 2014, for an elevated road project. The financial creditor granted a loan facility of Rs. 135 crore on January 17, 2015, to part-finance this infrastructure project. A Facility Agreement was executed

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## Issues and analysis

### Issue 1: Whether the corporate debtor has defaulted on its financial debt, warranting the initiation of CIRP …

**Ratio:** The existence of a financial debt and a default in its repayment, as established by the

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**Reasoning:** The NCLT found that the corporate debtor admitted to the debt and default in its reply

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**Interpretation:** The NCLT interpreted **section 7** of the IBC, in light of the Supreme Court's

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**Application:** Given the corporate debtor's explicit admission of debt and default, and the

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** Canara…; Canara Bank…
- **Respondents:** BBT Elevated Road…
- **Advocates:** Urmila Chak…; Sanjana…; +3 more

## Timeline

- **May 28, 2014 — Concession Ag…**: Corporate Debtor entered into a Concession Agreement with KMDA for an elevated road…
- **January 17, 2015 — Loan Sanction…**: Financial Creditor granted a loan facility 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)

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