# In the matter of Excel Arcade Private Limited

> NCLT judgment dated 2025-02-27. Citation: TCN-2025-NCLT-00428. Unity Small Finance Bank Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Feb 2025
- **Citation:** TCN-2025-NCLT-00428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/excel-arcade-private-limited-cf444180

## Summary

### Background

Unity Small Finance Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Excel Arcade Private Limited for defaulting on a loan repayment. The Corporate Debtor had approached the Punjab and Maharashtra Co-operative Society (PMC Society) for a term loan of Rs. 100 crores, which was sanctioned. The loan was secured by various assets, including land and corporate guarantees. The PMC Bank later merged with Unity Small Finance Bank Limited. After the Corporate Debtor defaulted, PMC Bank initiated arbitration proceedings, which resulted in an arbitral award in favor of the Financial Creditor. Execution proceedings were initiated in the Bombay High Court.

## Facts

Unity Small Finance Bank Limited (formerly PMC Bank) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Excel Arcade Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Excel Arcade had taken a loan of Rs. 100 crores from PMC Bank on 12.08.2018, sanctioned on 01.09.2018. The loan was secured by non-agricultural land, receivables from land sales, and corporate/personal guarantees. Excel Arcade defaulted on repayments, leading PMC Bank to issue loan recall notices starting 07.10.2019. Arbitration proceedings were initiated, resulting in an arbitral award on 28.04.2022 in favor of the Financial Creditor. Execution proceedings were then initiated in the Bombay High Court. The date of default was initially stated as

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## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** An arbitral award gives rise to a fresh cause of action and a fresh period of limitation

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**Reasoning:** The court considered the date of default as initially stated by the Financial Creditor

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**Interpretation:** The interpretation of the law is that an arbitral award, being a form of

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**Application:** In this case, the arbitral award dated 28.04.2022 provided a fresh cause of

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Unity Small…
- **Respondents:** Excel Arcade…

## Timeline

- **2018-08-12 — Loan Appli…**: Corporate Debtor approached Punjab and Maharashtra Co-operative Society (PMC Society)…
- **2018-09-01 — Loan San…**: PMC Society sanctioned the loan of Rs.…

## 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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