Asrec (India) Limited Vs Landmark Motels and Travels Private Limited (NCLT Mumbai)
Summary: The National Company Law Tribunal, Mumbai Bench-VI, considered a Section 7 application filed by ASREC India Limited against Landmark Motels and Travels Pvt. Ltd., together with an interlocutory application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Tribunal identified six principal issues: existence of financial debt and default; the allegedly contradictory dates of default; the applicability of Section 10A; the effect of Section 95 proceedings and the interim moratorium under Section 96 against personal guarantors; alleged non-compliance with RBI/MSME revival guidelines; and the effect of pending DRT/SARFAESI proceedings.
On the debt issue, the Tribunal found that the credit facilities originally granted by State Bank of India and DHFL were subsequently taken over by Indian Bank, secured by mortgage of the Corporate Debtor’s properties, and later assigned to ASREC India Limited under the Assignment Agreement dated 28.02.2025. The Corporate Debtor did not dispute availing the financial facilities, execution of security documents, creation of the mortgage, restructuring or the assignment. The Tribunal treated the OTS proposal dated 21.01.2022 as a clear acknowledgment of liability and noted the NeSL record of default produced by the Financial Creditor.
