# In the matter of G M Infinite Dwelling (India) Private Limited

> NCLT judgment dated 2024-07-30. Citation: TCN-2024-NCLT-00924. State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jul 2024
- **Citation:** TCN-2024-NCLT-00924
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/g-m-infinite-dwelling-india-private-limited-7bfc8ba7

## Summary

### Background

State Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against G.M. Infinite Dwelling (India) Private Limited, citing a default of Rs. 64,08,12,642/-. The corporate debtor had requested credit facilities in 2018 for a villa project, which the financial creditor granted. The corporate debtor defaulted on payments, leading to the account being classified as a non-performing asset (NPA). The financial creditor issued a demand notice and migrated the loan account to its Stressed Assets Management Branch. Despite settlement offers and provisional NOCs for the sale of villas, the corporate debtor failed to meet its commitments, prompting the financial creditor to file the

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## Facts

G.M. Infinite Dwelling (India) Private Limited requested credit facilities from State Bank of India on 2018-04-12 for a villa project named "GM Townsville". State Bank of India granted credit facilities via a Letter of Arrangement dated 2018-07-06, sanctioning Rs. 53,79,88,991/-. The Corporate Debtor and the land owner created an equitable mortgage. A Guarantee Agreement was executed on 2018-07-06 by M/s Patel Engineering Ltd and M/s Gulam Mustafa Enterprises. The Corporate Debtor failed to make repayments, with the first installment due on 2022-09-05. The Date of Default is 2022-10-05. The account became a Non-Performing Asset (NPA) on 2022-12-04. The total outstanding default amount is Rs. 64,08,12,642/- as of 2023-08-31. The Financial Creditor issued a

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of the loan obtained from the …

**Ratio:** The legal principle applied is that a default occurs when a debt becomes due and is not

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**Reasoning:** The court reasoned that the Corporate Debtor failed to make payments towards the loan

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**Interpretation:** The interpretation of 'default' under Section 3(12) of the IBC is broad,

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**Application:** The court applied this principle to the facts, noting that the Corporate Debtor

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** STATE BANK OF…
- **Respondents:** M/s. G M Infinite…
- **Advocates:** Arkaprava Guha…; Vija…

## Timeline

- **2018-04-12 — Credit Facilit…**: Corporate Debtor requested credit…
- **2018-07-06 — Letter of Arr…**: State Bank of India granted credit…

## 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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