Mumbai News: NCLT Admits Canara Bank Insolvency Plea Against KTPL Over ₹330.40 Crore Default, Orders CIRP Initiation

Mumbai, Nov 19: The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Canara Bank against Karanja Terminal & Logistics Private Limited (KTPL), thereby commencing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The tribunal has thus appointed Vijay Pitambar Lulla, an Insolvency Professional, in the case.

Tribunal Confirms Default Above Statutory Threshold

The commission, in its order, held, “In view of the foregoing findings, analysis and discussions, we conclude that the Corporate Debtor (KTPL) has committed a default in repaying the financial debt to the Financial Creditor (Canara Bank) for a sum well beyond rupees one crore. Thus, the present petition satisfies the minimum threshold of default of INR 1 crore prescribed u/s 4 of the Code for initiating the CIRP of the Corporate Debtor. It is trite to say that the Adjudicating Authority need not ascertain the exact amount of default committed by the Corporate Debtor for the purpose of admitting the application u/s 7 of the Code, as the same is the duty of the IRP/RP while verifying and collating the claim of the Applicant during the course of the CIRP of the Corporate Debtor.”

Canara Bank Reports ₹330.40 Crore Default

Canara Bank had filed a petition before the NCLT stating that there was a financial debt default totaling INR 330,40,24,498.23 (approximately Rs 330.40 crore) as on August 30, 2024. Canara Bank stated that the Corporate Debtor’s loan accounts were classified as a Non-Performing Asset (NPA) on June 11, 2021, after the company failed to honour its obligations under a sanctioned One-Time Restructuring (OTR) plan.

KTPL Claims Lenders Delayed Disbursement

KTPL, in its reply, claimed that the sanctioned facilities were never fully disbursed by the lenders and that there were delays in disbursing the debt by the lenders. Due to these reasons, the project for which the loan facilities were sanctioned was derailed, thereby impeding the revenue and cash flows from the project. Thus, no blame or fault could be attributed to KTPL for defaulting in repayment of the loan.

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Karanja Infrastructure Project Details Included in Petition

Karanja Infrastructure Private Limited (KIPL), as per the petition copy, is earmarked for the development and operation of a multipurpose terminal and ship-repairing facilities along with necessary infrastructure and other relevant facilities on a “Build, Own, Operate and Transfer (BOOT)” basis at Karanja Creek, Uran.

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