The National Company Law Tribunal (NCLT) has approved IIFL Finance’s petition in an ongoing case involving Satra Properties and Vistra ITCL (India). IIFL Finance extended loans to Satra Properties, securing them with property mortgages and other assurances. The total loan amounts to over Rs 185 crore, including principal and interest as of August 2020.
When Satra Property couldn’t repay the loans, IIFL Finance initiated proceedings in 2019. Later, in September 2019, they reached an agreement where Satra Property agreed to repay the owed sum to IIFL Finance’s subsidiary, IIFL Home Finance.
As part of this pact, Satra Property Developers pledged a portion of land in their Ghatkopar project to bolster the loan.
Despite these arrangements, Satra Properties faced insolvency proceedings in August 2020. IIFL Finance submitted its claim along with pertinent documents, but the resolution professional rejected it. They cited earlier agreements suggesting an alternate repayment method.
However, the NCLT ruled in favor of IIFL Finance. The tribunal clarified that the agreement on loan security meant that if the land was used to repay the loan, Satra Properties wouldn’t be liable to repay the same amount again.
This ruling affirms that the money owed by Satra Properties to IIFL Finance should be regarded as a financial debt, offering clarity on the loan repayment terms.
(Source: ET Realty)