NCLT rejects CIRP application as default by Corporate Debtor not proved

State Bank of India Vs Navjeevan Tyres Private Limited (NCLT Mumbai)

The case of State Bank of India (SBI) versus Navjeevan Tyres Private Limited, heard by the National Company Law Tribunal (NCLT) Mumbai, revolves around an application by SBI under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Navjeevan Tyres Pvt. Ltd. (the Corporate Debtor). Here’s a detailed summary of the proceedings:

Background

SBI, acting as the Financial Creditor, filed the application on November 22, 2022, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Navjeevan Tyres Pvt. Ltd. The basis of this application stems from financial facilities extended by SBI to M/s. Deogiri Infrastructure Private Limited, with whom Navjeevan Tyres Pvt. Ltd. had provided a corporate guarantee.

Financial Arrangements and Defaults

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