# National Asset Reconstruction Company Limited Vs Ludhiana Talwandi Toll Roads Private Limited

> NCLT judgment dated 2025-06-19. Citation: TCN-2025-NCLT-00698. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 Jun 2025
- **Citation:** TCN-2025-NCLT-00698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/national-asset-reconstruction-company-limited-vs-ludhiana-talwandi-toll-roads-pr-4b09a432

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by National Asset Reconstruction Company Limited (NARCL), acting as a trustee, against Ludhiana Talwandi Toll Roads Private Limited ('Corporate Debtor') for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated as a special purpose vehicle for the design, construction, development, operation, maintenance, management, and toll collection of the Ludhiana to Talwandi section of NH 95 in Punjab, under a concession agreement with the National Highways Authority of India (NHAI). To finance the project, the Corporate Debtor entered into a Common Loan Agreement with Punjab National Bank (PNB) and later with a consortium of lenders.

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## Facts

The Corporate Debtor, Ludhiana Talwandi Toll Roads Private Limited, was incorporated on 2010-12-20 as a special purpose vehicle for a road project. The National Highways Authority of India (NHAI) executed a Concession Agreement with the Corporate Debtor on 2011-01-20 for a 29-year period. The Corporate Debtor entered into a 'Common Loan Agreement' on 2011-07-19 with Punjab National Bank (PNB) to finance the project. A Novation Deed was executed on 2012-03-27, involving existing and new lenders. Canara Bank sanctioned a Rupee Term Loan on 2011-09-21, which was later modified on 2012-08-16. Canara Bank disbursed Rs. 38,56,00,000 between 2012-03-29 and 2016-02-29. The Scheduled Commercial Operation Date (SCOD) was agreed upon as 2014-01-16 but was extended multiple times.

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## Issues and analysis

### Issue 1: Whether the essential elements for admitting a company petition under Section 7 of the Insolvency …

**Ratio:** For a company petition to be admitted under section 7 of the Code, the following key

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**Reasoning:** The Tribunal considered the common loan agreements, sanction letter by Canara Bank,

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**Interpretation:** Section 7 of the IBC outlines the procedure for initiating CIRP by a financial

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**Application:** In this case, the Tribunal found that the existence of debt was proven through

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## Parties

- **Judges:** LAKSHMI G…; Hariharan…
- **Appellants:** National Asset…
- **Respondents:** Ludhiana Talwandi…
- **Advocates:** Rohit G…; Madhura Ku…; +3 more

## Timeline

- **2010-12-20 — Incorporation of…**: Ludhiana Talwandi Toll Roads Private Limited was incorporated as a special purpose…
- **2011-01-20 — Concession Ag…**: National Highways Authority of India (NHAI) executed a Concession Agreement with the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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