# State Bank of India v. Nova Infrastructure Developers Ltd.

> State Bank of India v. Nova Infrastructure Developers Ltd. — detailed IBC case summary, facts, issues, and ratio decidendi.

- **Court:** NCLT
- **Order date:** 22 Jun 2024
- **Citation:** IBC-2024-NCLT-000002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/state-bank-of-india-v-nova-infrastructure-developers-ltd-25910

## Summary

### Background

State Bank of India filed a Section 7 application against Nova Infrastructure Developers Ltd., the special purpose vehicle developing a mixed-use township near Pune. The project, launched in 2015, comprised residential towers, retail frontage, and hospitality components spread across 62 acres with project finance of Rs. 890 crore sanctioned in multiple tranches.

Following prolonged construction delays, cost overruns, and sluggish pre-sales, the account slipped into stress. SBI claimed default of Rs. 312 crore principal outstanding along with accrued interest. The corporate debtor contended that force majeure events including the pandemic and municipal approval delays excused performance timelines under the facility agreements.

…

## Facts

Nova Infrastructure Developers Ltd. was promoted by a regional construction group with prior experience in affordable housing. SBI structured the facility with milestone-linked disbursements tied to construction progress certificates from independent engineers.

By 2021, two towers reached shell completion while internal finishing lagged due to contractor defaults and working capital shortages. Pre-sales collections were diverted partly to complete critical common areas pursuant to buyer association litigation settlements.

SBI issued notice under Section 13(2) SARFAESI in August 2023 and initiated symbolic possession of marketing office premises. Parallel IBC filing followed in January 2024 after failure of joint lender forum restructuring.

…

## Issues and analysis

### Issue 1: Whether CIRP period may be extended under…

**Ratio:** Section 12 empowers the adjudicating authority to extend CIRP on application of the RP if…

**Reasoning:** CoC demonstrated concrete progress: binding term sheet with resolution applicant, pending…

**Interpretation:** Extensions are discretionary, time-bound, and must not become routine tools to…

**Application:** Single 90-day extension granted…

## Parties

- **Judges:** Hon'ble Dr. Ashok…
- **Appellants:** State Bank of…
- **Respondents:** Nova Infrastructur…
- **Other parties:** PowerGrid…
- **Advocates:** Abhishek Manu…; Adv. Pinky…

## Timeline

- **8 February 2024 — CIRP commen…**: NCLT Mumbai admits SBI application and…
- **22 March 2024 — CoC const…**: First CoC meeting held; SBI…

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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-mumbai/state-bank-of-india-v-nova-infrastructure-developers-ltd-25910