Mumbai, August 19, 2026: The National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Landmark Motels and Travels Pvt. Ltd. on a plea filed by ASREC India Limited, after finding that the hotel company had committed a financial default. As per ASREC, an amount of Rs 46.62 crore was pending and hence insolvency was initiated against the company.
Insolvency Proceedings Admitted
The tribunal also dismissed an interlocutory application filed by Landmark Motels seeking a stay on the insolvency proceedings.
ASREC had claimed that an amount of Rs 46.62 crore was in default. The financial facilities were originally extended by State Bank of India and DHFL and were subsequently taken over by Indian Bank.
The debt was later assigned to ASREC under an Assignment Agreement dated February 28, 2025. The loans were secured by several immovable properties of Landmark Motels in Andheri and Versova.
Default Date Disputed
The company had disputed the date of default, contending that its loan accounts were restructured in March 2020 and that repayment obligations under the restructured facilities commenced only from September 2020. It argued that any subsequent default would fall within the Covid-19 protection period under Section 10A of the Insolvency and Bankruptcy Code (IBC).
The NCLT, however, rejected the contention. It noted that the accounts had first become overdue on November 30, 2019, when the company failed to honour its repayment obligations.
The tribunal held that the restructuring itself demonstrated the financial stress and prior default in the account and did not wipe out the original default.
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CIRP Process Initiated
Finding that the financial debt existed and remained unpaid and that the statutory requirements for commencing the Corporate Insolvency Resolution Process (CIRP) had been satisfied, the NCLT admitted ASREC’s Section 7 petition.
The tribunal clarified that the precise amount of default would be quantified by the Interim Resolution Professional (IRP), but was satisfied that the default exceeded Rs 1 crore.
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