# In the matter of N Kumar Hosing & Infrastructure Private Limited CP (IB) No.1093-MB-IV-2020

> NCLT judgment dated 2023-02-24. Citation: TCN-2023-NCLT-04473. The case pertains to a Company Petition filed under Section 7 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Feb 2023
- **Citation:** TCN-2023-NCLT-04473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/n-kumar-hosing-infrastructure-private-limited-cp-ib-no1093-mb-iv-2020-af92f5fb

## Summary

### Background

The case pertains to a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Indian Bank (formerly Allahabad Bank) against N. Kumar Housing & Infrastructure Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The petition was filed on 17.03.2020, claiming a default amount of Rs.60,62,82,715.78. The date of default was specified as 31.12.2019, and the date of NPA was stated as 31.03.2017. The Financial Creditor had sanctioned a Term Loan Credit Facility of Rs.62 Crores to the principal borrower and associated company (Poonam Resorts Ltd) and the Corporate Guarantor on 23.03.2011. The principal borrower defaulted in repayment, leading to the NPA classification.

## Facts

Indian Bank (formerly Allahabad Bank) filed a Company Petition under Section 7 of the IBC against N. Kumar Housing & Infrastructure Private Limited, seeking CIRP initiation. The claimed default amount was Rs.60,62,82,715.78. The loan facility of Rs.62 Crores was sanctioned on 23.03.2011 to the principal borrower, Poonam Resorts Ltd, and the Corporate Guarantor. The principal borrower defaulted, leading to NPA classification on 31.03.2017. A demand notice was issued on 03.04.2017 under SARFAESI Act. The Corporate Debtor challenged the petition, citing disputes regarding the Principal Borrower's liability and pending counterclaims. The Corporate Debtor also stated readiness to deposit Rs.5 Crores. The NCLT Mumbai bench had previously appointed PWC to examine

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## Issues and analysis

### Issue 1: Whether the present petition deserves to be admitted for initiation of Corporate Resolution Process …

**Ratio:** Section 7 of the IBC read with rule 4(1) of the Insolvency & Bankruptcy (Application

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**Reasoning:** The Tribunal found that the Corporate Debtor's objections lacked substance and that the

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**Interpretation:** The legal issue revolves around the interpretation of Section 7 of the IBC and

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**Application:** The Tribunal applied the ratio to the facts by considering the Financial

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Indian Bank…
- **Respondents:** N. Kumar Hosing &…

## Timeline

- **2011-03-23 — Sanction of Term Loan…**: Financial Creditor sanctioned Term…
- **2017-03-31 — NPA Classif…**: Principal borrower defaulted, leading to classification of the credit facility as…

## 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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