1 week ago
Mumbai NCLT Admits Insolvency Proceedings Against Landmark Motels Default
A tribunal in Mumbai started an insolvency process against Landmark Motels.
ASREC India said the company had not paid ₹46.62 crore.
The loans were first connected to State Bank of India and DHFL and were later taken over by Indian Bank.
ASREC eventually received the debt through an assignment agreement.
Landmark Motels asked the tribunal to pause the case.
The company said its loans had been restructured in March 2020.
It argued that the missed payments were covered by Covid-19 protections.
The tribunal disagreed and said the account had already become overdue on November 30, 2019.
An insolvency professional will determine the exact amount still unpaid.
The Mumbai NCLT admitted insolvency proceedings against Landmark Motels and Travels Pvt. Ltd.
ASREC India Limited alleged that the company defaulted on ₹46.62 crore.
The debt originated from facilities extended by State Bank of India and DHFL, later taken over by Indian Bank.
Landmark Motels argued that restructuring in March 2020 delayed repayment obligations until September 2020.
The tribunal found the account overdue from November 30, 2019, dismissed the stay request, and initiated CIRP.
- Who
- ASREC India Limited and Landmark Motels and Travels Pvt. Ltd.; the Mumbai bench of the National Company Law Tribunal decided the matter.
- What
- The NCLT admitted a Section 7 insolvency petition and began the Corporate Insolvency Resolution Process against Landmark Motels.
- Where
- Mumbai, involving secured properties in Andheri and Versova.
- When
- The tribunal’s decision was reported on August 19, 2026; it found the account had first become overdue on November 30, 2019.
- Why
- ASREC alleged a financial default of ₹46.62 crore, and the tribunal found that a financial debt existed, remained unpaid, and exceeded the statutory threshold.
ASREC India and NCLT
Landmark Motels and Travels
Date of default
ASREC India and NCLT
ASREC’s case was based on an unpaid financial debt, and the NCLT found that the account first became overdue on November 30, 2019.
Landmark Motels and Travels
Landmark Motels argued that its loans were restructured in March 2020 and that repayment obligations under the restructured facilities began only in September 2020.
Covid-19 protection
ASREC India and NCLT
The NCLT held that the restructuring reflected existing financial stress and an earlier default, which was not erased by the restructuring.
Landmark Motels and Travels
Landmark Motels contended that any later default fell within the Covid-19 protection period under Section 10A of the Insolvency and Bankruptcy Code.
Continuation of proceedings
ASREC India and NCLT
The NCLT dismissed the company’s stay application and found that the requirements for commencing CIRP were satisfied.
Landmark Motels and Travels
Landmark Motels sought a stay on the insolvency proceedings, but the tribunal rejected that request.
Key facts
- Applicant
- ASREC India Limited
- Respondent
- Landmark Motels and Travels Pvt. Ltd.
- Alleged default
- ₹46.62 crore
- First overdue date
- November 30, 2019
- Debt assignment
- The debt was assigned to ASREC under an agreement dated February 28, 2025.
- Tribunal outcome
- The NCLT admitted the Section 7 petition and dismissed Landmark Motels’ request for a stay.
- Next step
- The Interim Resolution Professional will quantify the precise amount of default.
Sources
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