# In the matter of Honey Builders Limited

> NCLT judgment dated 2025-03-18. Citation: TCN-2025-NCLT-00355. The case involves a petition filed by Standard Capital Markets Ltd. (the Applicant/Financial…

- **Court:** NCLT
- **Order date:** 18 Mar 2025
- **Citation:** TCN-2025-NCLT-00355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/honey-builders-limited-e201d537

## Summary

### Background

The case involves a petition filed by Standard Capital Markets Ltd. (the Applicant/Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Honey Builders Ltd. (the Respondent/Corporate Debtor). The petition stems from a financial debt owed by Honey Builders Ltd. to Standard Capital Markets Ltd. The debt originated from a loan facility initially extended by Sammaan Capital Ltd. (SCL) to Veer Chemicals Pvt. Ltd. (Veer), with Honey Builders Ltd. later becoming a co-borrower and guarantor. SCL subsequently assigned its rights under the loan agreement to Standard Capital Markets Ltd. The Applicant claims that the Corporate Debtor defaulted on its payment obligations,

…

## Facts

Veer Chemicals Pvt. Ltd. sought loan facilities from Sammaan Capital Ltd. (SCL) for construction activities. SCL issued a letter sanctioning the financial facility. SCL and Veer entered into a Loan Agreement for Rs. 150,00,00,000/- dated 2018-10-30. SCL disbursed the amount to Veer on 2018-11-02. Honey Builders Ltd. and other sister concerns executed a Memorandum of Entry on 2020-11-28 creating a first-ranking mortgage in favor of SCL with respect to land. They also executed a Deed of Hypothecation in favor of SCL. On 2020-10-01, SCL and Veer executed an Addendum Agreement extending the term of the Loan Agreement until 2025-10-05. The payment terms were modified to a uniform system of quarterly payments. SCL executed a Deed of Assignment dated 2024-10-01 in favor of

…

## Issues and analysis

### Issue 1: Whether a default has occurred …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when whole or any part

…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor failed to make the EMI payment

…

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

…

**Application:** In this case, the Corporate Debtor failed to make the EMI payment due on

…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. CHARANJEET…
- **Appellants:** Standard Capital…
- **Respondents:** Honey Builders…

## Timeline

- **2018-10-30 — Loan Agre…**: SCL and Veer entered into a Loan…
- **2018-11-02 — Disbursement…**: SCL disbursed 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/honey-builders-limited-e201d537