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

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00746. Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/newtech-promoters-and-developers-pvt-ltd-ib-2465-nd-2019-957083e7

## Summary

### Background

Bank of Maharashtra filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Newtech Promoters and Developers Pvt. Ltd. The application was based on an alleged default of Rs. 77,89,10,700/-. The Corporate Debtor, Newtech Promoters and Developers Pvt. Ltd., formerly known as Ashiyana Promoters and Developers Pvt. Ltd., was granted a term loan of Rs. 50.00 crore by the Financial Creditor for a Group Housing Project. The loan was repayable in quarterly installments, secured against movable and immovable properties, and personal guarantees. The Corporate Debtor defaulted, leading to the account being classified as NPA. The Financial Creditor issued a statutory notice

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## Facts

The Bank of Maharashtra extended a term loan of Rs. 50 crore to Newtech Promoters and Developers Pvt. Ltd. (formerly Ashiyana Promoters and Developers Pvt. Ltd.) for a Group Housing Project at Plot no. HRA-11, Surajpur Site C, Greater Noida. The loan was sanctioned on 07.12.2012 and was to be repaid in 6 quarterly installments starting October 2015. The loan was secured against movable and immovable properties of the Corporate Debtor and personal guarantees of its directors. The Corporate Debtor executed loan documents on 06.02.2013, including a Demand Promissory Note, Agreement for term loan, and Composite deed of hypothecation. An escrow agreement was also executed on 18.02.2013. The Corporate Debtor created an equitable mortgage of its property in favor of the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is barred by limitation under Section 238A …

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

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**Reasoning:** The NCLT considered the Corporate Debtor's contention that the application was barred by

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**Interpretation:** Section 238A of the Insolvency and Bankruptcy Code, 2016, provides for a

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**Application:** The Corporate Debtor's acknowledgment of debt in its communication to the

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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. 50.00 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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