The National Company Law Tribunal (NCLT) at Delhi has admitted a ₹1,710 crore insolvency petition filed by National Asset Reconstruction Company Limited (NARCL) against West Haryana Highways Project Private Limited, holding that the company had acknowledged its outstanding liability but failed to demonstrate that it had been discharged.
A Bench of Judicial Member Bachu Venkat Balaram Das and Technical Member Ravindra Chaturvedi observed, “The Corporate Debtor has not been able to demonstrate any lawful discharge of his financial liability. Therefore, the existence of Debt and Default has been established and the requirements under Section 7 of the Code are satisfied.”
NARCL approached the tribunal over loans extended to the company by a consortium of senior and subordinate lenders for a highway project. The default claimed was approximately ₹1,710 crore as on February 28, 2025, against a principal outstanding of ₹385.90 crore, along with interest.
The company argued that its debt had already been dealt with under the resolution plan approved for its parent, Era Infra Engineering Limited (EIEL). It said the lenders had included the debt in their claims during EIEL's insolvency proceedings and that separate proceedings would disrupt the arrangement for sharing arbitral proceeds.
NARCL countered that the claims in EIEL's insolvency related to its liability as a corporate guarantor, while the present case concerned the company's liability as the principal borrower. It said it had received ₹13.86 lakh under EIEL's resolution plan and adjusted the amount against the outstanding debt.
The tribunal noted that the company had not disputed the loan documents or produced evidence of repayment. Its balance confirmation letter and 2024-25 financial statements also acknowledged the liability.
Relying on the Supreme Court's ruling in M. Suresh Kumar Reddy v. Canara Bank, the tribunal admitted the petition, imposed a moratorium and appointed Ashish Arjunkumar Rathi as the Interim Resolution Professional.
For Applicant: Advocates Abhishek Anand,Smriti Churiwal, Jaiveer, Vidisha, Meher, Palak
For Respondent : Senior Advocate Siddharth Yadav, Advocates Divya Verma,Vaishnavi