Mumbai News: NCLT Admits Tata Capital Petition, Initiates Insolvency Proceedings Against Dharan Infra-EPC

Mumbai, Dec 19: The National Company Law Tribunal (NCLT) has admitted a petition filed by Tata Capital Housing Finance Limited (TCHFL) under Section 7 of the Insolvency and Bankruptcy Code, 2016, thereby initiating the Corporate Insolvency Resolution Process (CIRP) against Dharan Infra-EPC Limited (DIEL). The tribunal found that a financial debt of Rs 28.04 crore was due and in default, with the date of default pegged at February 7, 2023.

Construction Finance Facilities Sanctioned Since 2018

As per the case filed by the financial creditor, TCHFL, the corporate debtor, DIEL, had approached it in 2018 seeking a construction finance facility amounting to Rs 35 crore. The facility was duly sanctioned by TCHFL vide a sanction letter dated December 17, 2018, with an addendum issued on December 15, 2020.

Additional Loan of Rs 45 Crore Approved in 2019

In 2019, DIEL sought an additional construction finance facility of Rs 45 crore, which was sanctioned by TCHFL vide a sanction letter dated May 20, 2019. An addendum to the said sanction letter was subsequently issued on March 7, 2022.

Loan Account Declared NPA in 2023

DIEL committed its first default on March 9, 2020, when it failed to pay an EMI of Rs 3,38,963 due for February 2020. Thereafter, the loan account of DIEL was classified as a Non-Performing Asset (NPA) on February 7, 2023.

Tribunal Finds Debt and Default Clearly Established

In its order pronounced on December 12, 2025, the tribunal held that Tata Capital had conclusively established the existence of financial debt and default through loan agreements, sanction letters, statements of account, registered mortgage deeds, demand notices issued under the SARFAESI Act, and multiple acknowledgements of liability by the corporate debtor.

The tribunal noted that Dharan Infra-EPC had, on several occasions, admitted its outstanding dues, including through replies to statutory notices, affidavits filed in related proceedings, and proposals for one-time settlement.

Arbitration Proceedings Not a Bar to IBC Action

Rejecting the corporate debtor’s objection that it had instituted proceedings under Section 9 of the Arbitration and Conciliation Act, 1996, by filing a Commercial Arbitration Petition before the Bombay High Court seeking an injunction against the financial creditor from attaching or auctioning the mortgaged units, the NCLT ruled that the pendency of arbitration-related proceedings before the Bombay High Court did not bar the admission of a petition under Section 7 of the IBC.

Moratorium Declared Under IBC

Relying on settled law, the tribunal observed that for a financial creditor’s application, the adjudicating authority is only required to examine the existence of debt and default, both of which stood proved in the present case.

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The tribunal also declared a moratorium under Section 14 of the IBC, prohibiting the institution or continuation of suits and recovery proceedings against Dharan Infra-EPC, and restraining the transfer or alienation of its assets during the CIRP period.

Interim Resolution Professional Appointed

Further, it appointed Palak Swapnil Desai as the Interim Resolution Professional and directed Tata Capital to deposit Rs 3 lakh towards initial CIRP costs.

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