# In the matter of Upal Buildtech Private Limited

> NCLT judgment dated 2025-07-09. Citation: TCN-2025-NCLT-01178. M/s Sadhana City Homes Private Limited, the Financial Creditor, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 9 Jul 2025
- **Citation:** TCN-2025-NCLT-01178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/upal-buildtech-private-limited-686c497a

## Summary

### Background

M/s Sadhana City Homes Private Limited, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s UPAL Buildtech Private Limited, the Corporate Debtor.

## Facts

M/s Sadhana City Homes Private Limited filed a petition under Section 7 of the IBC to initiate CIRP against M/s UPAL Buildtech Private Limited.

The Corporate Debtor, M/s UPAL Buildtech Private Limited, is a corporate guarantor to the principal borrower, M/s Vayuputra Constructions Private Limited.

The Principal Borrower approached the Financial Creditor in 2016 for financial assistance.

A Loan Agreement dated 01.05.2017 was entered into between the Financial Creditor and the Principal Borrower.

The Financial Creditor extended the loan facility for a period of 2 years.

The Financial Creditor sent an Invocation Letter dated 02.08.2023 to the Corporate Debtor and Principal Borrower.

The Principal Borrower has been admitted into CIRP by Order dated 04.12.2024.

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## Issues and analysis

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

**Ratio:** The Corporate Debtor admitted to providing a corporate guarantee and the Principal

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**Reasoning:** The Adjudicating Authority considered the loan agreements, guarantees, and default

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**Interpretation:** The existence of a 'Financial Debt' and Guarantee given by the Corporate Debtor

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**Application:** The default in repayment of the

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## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** M/S SADHANA CITY…
- **Respondents:** M/S UPAL BUILDTECH…
- **Other parties:** Shivanand…
- **Advocates:** Yashraj…; Pankaj Ag…; +1 more

## Timeline

- **2023-09-17 — Application…**: The present application was filed…
- **2024-12-04 — CIRP Initiated Against…**: The co-ordinate bench of this Adjudicating Authority had initiated CIRP against the…

## 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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