# In the matter of Sigtia Constructions Private Limited

> NCLT judgment dated 2025-02-07. Citation: TCN-2025-NCLT-00513. The case pertains to a petition filed by Piramal Capital & Housing Finance Limited (later…

- **Court:** NCLT
- **Order date:** 7 Feb 2025
- **Citation:** TCN-2025-NCLT-00513
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sigtia-constructions-private-limited-0a301b4e

## Summary

### Background

The case pertains to a petition filed by Piramal Capital & Housing Finance Limited (later replaced by Omkara Assets Reconstruction Private Limited) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sigtia Constructions Private Limited, the Corporate Debtor, due to an alleged default in repayment of a loan. The loan was initially sanctioned by Dewan Housing Finance Limited (DHFL) and later enhanced through multiple agreements. DHFL was admitted into CIRP, and Piramal Capital & Housing Finance Limited, through a reverse merger, became the entity pursuing the claim. The Corporate Debtor failed to repay the outstanding amount despite notices, leading to the petition.

## Facts

Piramal Capital & Housing Finance Limited (later Omkara Assets Reconstruction Private Limited) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Sigtia Constructions Private Limited. The initial loan of Rs. 450 crores was sanctioned in May 2018 by DHFL, followed by an enhancement of Rs. 725 crores in October 2018, and another enhancement of Rs. 735 crores in August 2019, totaling Rs. 1910 crores. The first event of default occurred on 15.03.2019, when the Corporate Debtor failed to pay the interest due. DHFL was admitted into CIRP, and Piramal Capital & Housing Finance Limited merged with DHFL. Notices were issued to the Corporate Debtor, but they failed to repay the outstanding amount. The date of default is

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** The failure to pay interest or principal constitutes an event of default as per the loan

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**Reasoning:** The court observed that the Corporate Debtor failed to pay the first interest amount due

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**Interpretation:** The 'event of default' clause in the loan agreements is interpreted to mean

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**Application:** The Corporate Debtor's failure to pay the interest due on 15.03.2019, as per

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Omkara Assets…
- **Respondents:** Sigtia Constructio…

## Timeline

- **2018-05-01 — First Loan Sa…**: DHFL sanctioned a loan of Rs. 450…
- **2018-10-01 — Second Loan Sa…**: DHFL sanctioned an enhancement of Rs.…

## 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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