# In the matter of Newtech Promoters and Developers Pvt. Ltd. IB-2465-(ND)-2019

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00751. The Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00751
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/newtech-promoters-and-developers-pvt-ltd-ib-2465-nd-2019-369935d5

## Summary

### Background

The Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Newtech Promoters and Developers Pvt. Ltd. The application was based on the alleged default by the respondent in settling an amount of Rs. 77,89,10,700/-. The Financial Creditor had granted a term loan of Rs. 50.00 crore to the Corporate Debtor for financing a Group Housing Project. The loan was repayable in quarterly installments, and the Corporate Debtor had executed loan documents and created security in favor of the Financial Creditor. The Corporate Debtor defaulted in repayment,

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## Facts

The Bank of Maharashtra (Financial Creditor) granted a term loan of Rs. 50 crore to Newtech Promoters and Developers Pvt. Ltd. (Corporate Debtor) for a Group Housing Project. The loan was sanctioned on 07.12.2012 and later revised to Rs. 49 crore on 15.01.2016. The Corporate Debtor was to repay the loan in 6 quarterly installments starting from October-December 2016. The Corporate Debtor executed loan documents, including a Demand Promissory Note, Agreement for term loan, and Composite deed of hypothecation, and created security by way of equitable mortgage. The Corporate Debtor defaulted in repayment, leading to the account being classified as NPA on 29.12.2016. The Financial Creditor issued a statutory notice under SARFAESI Act on 13.03.2018 and filed O.A. No.

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## Issues and analysis

### Issue 1: Whether the present application by the petitioner is barred by limitation under Section 238A of the …

**Ratio:** The limitation period for recovery of dues commences from the due date of each

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**Reasoning:** The Tribunal noted that the Corporate Debtor had acknowledged the existence of debt,

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**Interpretation:** Section 238A of the IBC prescribes a limitation period for applications under

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**Application:** The Corporate Debtor's acknowledgement of debt in its communications, including

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/s. Newtech…

## Timeline

- **2012-12-07 — Loan San…**: Bank of Maharashtra sanctioned a term loan of Rs. 50 crore to Newtech Promoters and…
- **2013-02-06 — Loan Documents…**: Corporate Debtor executed loan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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