Bank of India Limited Vs Borivali Healthcare Private Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, admitted a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The applicant, a financial creditor, had sanctioned aggregate credit facilities of ₹10.45 crores to the Corporate Debtor, including three term loans and an overdraft facility, disbursed between March 2022 and July 2023. The term loans were repayable in 108 monthly instalments and the overdraft was repayable on demand.
The Corporate Debtor failed to honor repayment commitments due to insufficient cash flows. Following persistent defaults from February 2024 onwards, the account was classified as Non-Performing Asset (NPA) with effect from 29.05.2024. A notice under Section 13(2) of the SARFAESI Act was issued on 30.05.2024 granting 60 days for repayment. Partial recoveries of ₹46.04 lakhs were made, with the last recovery on 31.12.2024. As on 04.09.2025, the outstanding amount was ₹10,91,58,291/- plus further interest and costs. The amended Form-1 recorded the date of default as 29.02.2024.
The applicant placed on record loan documents, sanction letters, security documents including mortgage and hypothecation deeds, guarantee agreements, and a record of default from NESL. The Corporate Debtor, in its reply affidavit, did not dispute the debt or default and declared itself insolvent, requesting admission of the petition.
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