Mumbai, March 23: The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Canara Bank against Supreme Ahmednagar Karmala Tembhurni Tollways Private Limited, initiating the Corporate Insolvency Resolution Process (CIRP) against the company over a default of Rs 283.95 crore.
Loan default and consortium details
The petition, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), pertained to loans extended as part of a consortium financing arrangement for a road project in Maharashtra. The tribunal noted that the default dates back to December 31, 2015, when the company failed to service its debt obligations.
According to the order, the corporate debtor had availed a total credit facility of Rs 405 crore from a consortium of lenders led by Punjab National Bank, with Canara Bank contributing Rs 100 crore and an additional Rs 10.7 crore later sanctioned to address cost overruns.
Tribunal observations on debt and liability
On the issue of debt and default, the NCLT observed that documentary evidence, including loan agreements and statements of accounts, clearly established disbursal and non-repayment. It further noted that the default amount exceeded the statutory threshold of Rs 1 crore under the IBC.
The tribunal also dismissed the company’s contention that its liabilities had been transferred to another entity, Kalyan Toll Infrastructure Limited, noting that no concluded substitution agreement was ever executed. “In the absence of a binding agreement, the corporate debtor continues to remain liable,” the bench held.
RBI norms do not waive liability
Addressing another key defence, the NCLT clarified that RBI norms on non-performing assets (NPA) relate to accounting practices of banks and do not extinguish a borrower’s contractual liability to pay interest.
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“This Tribunal observed that the said RBI Circular primarily governs the manner in which banks and financial institutions are required to recognise income, classify assets, and make provisioning in their books of account. The object of the Circular is regulatory and accounting in nature, ensuring proper financial discipline and transparency in banking operations. It does not, in any manner, provide for waiver or extinguishment of contractual interest payable by a borrower under the loan documents. Accordingly, the contention based on the RBI Master Circular is found to be devoid of merit,” the order copy reads.
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