# In the matter of ICON BUILDCON PRIVATE LIMITED

> NCLT judgment dated 2025-11-12. Citation: TCN-2025-NCLT-01651. IL&FS Financial Services Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Nov 2025
- **Citation:** TCN-2025-NCLT-01651
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/icon-buildcon-private-limited-ff32e960

## Summary

### Background

IL&FS Financial Services Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Icon Buildcon Private Limited, the Corporate Debtor, due to a default in payment of a financial debt.

## Facts

IL&FS Financial Services Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Icon Buildcon Private Limited.

Icon Buildcon Private Limited is the Corporate Debtor and also a Corporate Guarantor to Ansal Properties and Infrastructure Limited (APIL).

APIL defaulted on a loan facility of Rs. 50,00,00,000/- granted by IL&FS Financial Services Limited.

A deed of guarantee was executed by the Corporate Debtor in favor of the Applicant on 11.05.2016.

APIL made settlement proposals, but the settlement failed.

The Corporate Debtor defaulted in making payment of Rs. 23,07,38,282/-.

A demand notice was issued to the Corporate Debtor on 09.09.2024.

CIRP has already been initiated against the Principal Borrower, APIL.

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## Issues and analysis

### Issue 1: Whether the petition under Section 7 of the IBC is maintainable against the Corporate Debtor, who …

**Ratio:** Yes, simultaneous proceedings can be initiated against the principal borrower and

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**Reasoning:** The Hon'ble NCLAT and Supreme Court have observed that simultaneous proceedings can be

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**Interpretation:** The obligation of the guarantor is coextensive and coterminous with the

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**Application:** The initiation of CIRP against the Principal Borrower does not bar the

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** IL & FS Financial…
- **Respondents:** ICON BUILDCON…
- **Other parties:** Chandar P…
- **Advocates:** Gopal…; Satendra Ku…; +1 more

## Timeline

- **2016-02-16 — Sanction…**: Applicant extended credit facilities vide its sanction letter bearing no. D/OTL/16/89…
- **2016-03-18 — Loan Agre…**: Loan agreement dated…

## 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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