# In the matter of Raebareilly Allahabad Highway Private Limited

> NCLT judgment dated 2024-02-01. Citation: TCN-2024-NCLT-02811. State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Feb 2024
- **Citation:** TCN-2024-NCLT-02811
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raebareilly-allahabad-highway-private-limited-58573ba7

## Summary

### Background

State Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Raebareilly Allahabad Highway Private Limited, citing a total financial default of Rs. 105,63,32,977.24. The corporate debtor had entered into a Concession Agreement with the National Highway Authority of India (NHAI) to construct, operate, and maintain a section of National Highway 24B. The financial creditor claimed that the corporate debtor failed to meet its payment obligations, leading to the loan account being classified as a Non-Performing Asset (NPA). A tripartite agreement was executed between NHAI, the corporate debtor, and the financial creditor to restructure the repayment schedule after

…

## Facts

The State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Raebareilly Allahabad Highway Private Limited (RAHPL). The application was based on a financial default of Rs. 105,63,32,977.24. RAHPL had entered into a Concession Agreement with the National Highway Authority of India (NHAI) on March 31, 2011, to construct, operate, and maintain the Raebareilly to Allahabad section of National Highway 24B. To finance the project, RAHPL approached a consortium of banks, including SBI, for a loan of Rs. 225.08 Crores in 2011. A Common Loan Agreement was entered into on October 4, 2011. The loan account was classified as a Non-Performing Asset (NPA) on January

…

## Issues and analysis

### Issue 1: Whether there exist a valid Authorization in …

**Ratio:** Regulation 76 and 77 of The State Bank of India General Regulations, 1955, and a

…

**Reasoning:** The NCLT considered the Gazette Notification dated 02.05.1987, submitted by the CD, which

…

**Interpretation:** The regulations and notification empower senior management officers of the

…

**Application:** The NCLT found that Mr. Abhishek Kumar, as an Assistant General Manager, held a

…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** State Bank of…
- **Respondents:** RAEBAREILLY…

## Timeline

- **2011-03-31 — Concession Ag…**: The Corporate Debtor entered into a Concession Agreement with the National Highway…
- **2011-10-04 — Common Loan A…**: The Consortium Banks entered into a Common…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raebareilly-allahabad-highway-private-limited-58573ba7