# In the matter of Solapur Tollways Private Limited

> NCLT judgment dated 2024-12-20. Citation: TCN-2024-NCLT-00007. The Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Dec 2024
- **Citation:** TCN-2024-NCLT-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/solapur-tollways-private-limited-176ff2f3

## Summary

### Background

The Union Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Solapur Tollways Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition arises from the corporate debtor's default on loan repayments. The corporate debtor is a special purpose vehicle originally promoted by SREI Infrastructure Finance Limited and Coastal Projects Limited, which was granted a concession by the National Highways Authority of India (NHAI) to develop a highway project. A loan agreement was executed between the financial creditor and the corporate debtor for Rs. 588.42 Crore, which was later amended and novated. The corporate debtor defaulted on repayments, leading to its account being classified as a

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## Facts

Solapur Tollways Private Limited (Corporate Debtor) is a special purpose vehicle promoted by SREI Infrastructure Finance Limited and Coastal Projects Limited. The National Highways Authority of India (NHAI) granted the Corporate Debtor a concession to develop a highway project. A loan agreement was executed between Union Bank of India (Financial Creditor) and the Corporate Debtor for Rs. 588.42 Crore on August 3, 2013. The loan agreement was amended and novated multiple times. The Corporate Debtor availed loans from various lenders, including Rs. 200 Crore from Union Bank of India. The Corporate Debtor defaulted on loan repayments, with the total amount in default being Rs. 195,55,15,022/- as of December 31, 2023. The account was classified as a Non-Performing Asset

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in repayment of its financial obligations to the …

**Ratio:** To admit an application under Section 7 of the I&B Code, the Adjudicating Authority

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**Reasoning:** The NCLT found that the Corporate Debtor defaulted on loan repayments, with the total

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**Interpretation:** The legal principle is that if a corporate debtor defaults on a financial debt,

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**Application:** In this case, the NCLT relied on the NeSL report, balance sheets, and auditor's

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Union Bank of…
- **Respondents:** Solapur Tollways…

## Timeline

- **2012-12-29 — Concession Ag…**: NHAI and the corporate debtor entered into a Concession Agreement for the development of…
- **2013-08-03 — Loan Agre…**: The Petitioner Bank and the Corporate Debtor entered into a Loan Agreement for Rs. 588.42…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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