# In the matter of New Hind Silk House Private Limited

> NCLT judgment dated 2024-02-12. Citation: TCN-2024-NCLT-02638. PNB Housing Finance Limited filed an application (I.A No. 1299/KB/2023) in an ongoing corporate…

- **Court:** NCLT
- **Order date:** 12 Feb 2024
- **Citation:** TCN-2024-NCLT-02638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/new-hind-silk-house-private-limited-eb03a18d

## Summary

### Background

PNB Housing Finance Limited filed an application (I.A No. 1299/KB/2023) in an ongoing corporate insolvency resolution process (CIRP) against New Hind Silk House Private Limited. The application contests the Interim Resolution Professional's (IRP) rejection of a portion of PNB Housing Finance's claim. The corporate debtor had approached PNB Housing Finance for a non-housing loan for business expansion, offering properties as mortgage. Multiple loan and disbursement letters were executed. The corporate debtor defaulted on repayment, leading to the account being declared a non-performing asset. PNB Housing Finance issued a notice under Section 13(2) of the SARFAESI Act. A one-time settlement (OTS) was proposed but not fully executed by the corporate debtor. PNB Housing

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## Facts

Rahul Hydrocarbon Commercial Private Limited is the financial creditor. New Hind Silk House Private Limited is the corporate debtor. PNB Housing Finance Limited, the applicant, provided a non-housing loan to New Hind Silk House Private Limited for business expansion, secured by a mortgage on properties. The loan was sanctioned on January 18, 2018, with disbursement on January 19, 2018. A supplemental agreement was executed on November 30, 2020, for additional loan. The corporate debtor defaulted on repayment, leading to the account being classified as a non-performing asset on May 12, 2022. PNB Housing Finance issued a notice under Section 13(2) of the SARFAESI Act on May 16, 2022, demanding Rs 6,25,85,029.85. A one-time settlement (OTS) was proposed on February 15,

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## Issues and analysis

### Issue 1: Whether the Interim Resolution Professional (IRP) was correct in rejecting a portion of PNB Housing …

**Ratio:** The legal principle applied is that if a one-time settlement (OTS) fails due to

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**Reasoning:** The court reasoned that the corporate debtor failed to comply with the terms of the OTS

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**Interpretation:** The interpretation is that a settlement agreement is contingent upon full

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**Application:** In this case, the corporate debtor's failure to complete the OTS payment meant

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## Parties

- **Judges:** RohitKa…; D. Ar…
- **Appellants:** PNB Housing…
- **Respondents:** New Hind Silk…; Bimal Kanti…
- **Advocates:** Md. Dilwa…; Rishav Ba…; +1 more

## Timeline

- **2018-01-18 — Loan San…**: Loan facility sanctioned by letter dated 18th January 2018 bearing reference No…
- **2018-01-19 — Disbursement…**: Parties executed disbursement…

## 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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