# In the matter of Raebareilly Allahabad Highway Private Limited

> NCLT judgment dated 2024-02-01. Citation: TCN-2024-NCLT-02814. 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-02814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raebareilly-allahabad-highway-private-limited-fa38c8df

## 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 (CD) entered into a Concession Agreement with the National Highway Authority of India (NHAI) in 2011 to construct, operate, and maintain a section of National Highway 24B. The CD approached a consortium of banks for financing, leading to a Common Loan Agreement in 2011. The CD's loan account was classified as Non-Performing Asset (NPA) in 2017. NHAI sanctioned a loan to the CD under the One Time Fund Infusion and Rationalized Compensation Scheme (OTFIS), resulting in a Tripartite

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## Facts

The State Bank of India (SBI) filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Raebareilly Allahabad Highway Private Limited (RAHPL). RAHPL entered into a Concession Agreement with the National Highway Authority of India (NHAI) on March 31, 2011, for the construction, operation, and maintenance of a section of National Highway 24B. To finance the project, RAHPL approached a consortium of banks, including SBI, resulting in a Common Loan Agreement dated October 4, 2011. The loan account of RAHPL was classified as Non-Performing Asset (NPA) on January 29, 2017. NHAI sanctioned a loan of Rs. 119.91 crore to RAHPL under the One Time Fund Infusion and Rationalized Compensation

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## 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, authorize

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**Reasoning:** The NCLT considered the Gazette Notification dated 02.05.1987 and Regulation 76/77 of The

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**Interpretation:** The regulations and notifications authorize senior management officers to sign

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**Application:** The Assistant General Manager, Mr. Abhishek Kumar, had the authority to file

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## 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 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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