NCLT Admits Bank Of Maharashtra Plea To Begin Insolvency Process Against Tirumalla India Storehouse
The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted a plea filed by Bank of Maharashtra seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Tirumalla India Storehouse Private Limited over a default of Rs 17.98 crore. Bank Moves Tribunal Under IBC Section 7 Against Corporate Guarantor The bank had approached the tribunal under Section 7 of the…
The National Company Law Tribunal (NCLT) in Mumbai has granted a plea from Bank of Maharashtra to commence the Corporate Insolvency Resolution Process (CIRP) against Tirumalla India Storehouse Private Limited, according to a report from the source. The bank had sanctioned Rs 16 crore in credit facilities to Tirumalla Agro Industries Private Limited, including two term loans and a cash credit facility.
The NCLT admitted the application based on the bank's documentation and an affidavit, noting that the principal borrower had defaulted on repayment of the term loans and cash credit account. The corporate guarantee invoked by the bank amounts to Rs 17.98 crore, and the debt defaulted by the corporate debtor totals this amount. The NCLT relied on the bank's records, as the principal borrower failed to appear before the tribunal or file a reply despite service notices.
The outstanding default exceeds the Rs 1-crore threshold under Section 4 of the Insolvency and Bankruptcy Code (IBC), leading the tribunal to admit the application under Section 7.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
