Indian Overseas Bank Vs Mhow Ghatabill Toll Roads Pvt. Ltd. (NCLT Delhi)
The National Company Law Tribunal, Delhi Bench, admitted an application filed by Indian Overseas Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Mhow Ghatabill Toll Roads Private Limited. The Corporate Debtor, incorporated on 18.08.2011, was engaged in developing the Mhow–Ghatabillod four-lane toll road project in Madhya Pradesh. IL&FS Financial Services Limited had sanctioned a term loan of ₹217 crore under a loan agreement dated 02.03.2012, and pursuant to a novation notice dated 01.10.2012, debt of ₹70 crore was assigned to Indian Overseas Bank, which was accepted by the Corporate Debtor through a Board Resolution dated 27.09.2012. The Corporate Debtor executed security documents in favour of the lenders during October and November 2012.
The Financial Creditor stated that the loan account was classified as a Non-Performing Asset on 29.06.2019 due to non-payment. A demand notice dated 19.08.2019 and a loan recall notice dated 30.06.2020 were issued. According to the application, the Corporate Debtor acknowledged its outstanding dues in its audited financial statements for the financial years 2021-22, 2022-23 and 2023-24, reflecting an outstanding amount of ₹66,08,64,090/-. As on 20.11.2025, the amount claimed was ₹1,17,74,94,044.88, inclusive of contractual interest at 11% per annum and penal interest at 2% per annum. The Financial Creditor contended that both the existence of financial debt and occurrence of default, as required under Section 7 of the Code, stood established.
