NCLT Delhi Admits Indian Overseas Bank's CIRP Plea Against Mhow Ghatabill Toll Roads Over ₹117.74 Crore Default
Sandhra Suresh
11 July 2026 5:40 PM IST
The Principal Bench of the National Company Law Tribunal (NCLT), New Delhi, has admitted an insolvency petition filed by Indian Overseas Bank against infra company Mhow Ghatabill Toll Roads Pvt. Ltd. over an alleged default of ₹117.74 crore.
The tribunal found that the bank had established the existence of a financial debt and default in repayment and that the application was filed within the prescribed limitation period.
A bench of President Justice Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi made the ruling.
Mhow Ghatabill Toll Roads Pvt. Ltd. (previously known as Essel Mhow Ghatabill Toll Roads Pvt. Ltd.) was incorporated in 2011 and engaged in infrastructure development. It had availed a term loan of Rs 217 crore from IL&FS Financial Services Limited in March 2012.
Subsequently, a portion of this debt amounting to Rs 70 crore was assigned to Indian Overseas Bank through a novation notice dated 1 October 2012, duly accepted by the debtor's board resolution. The debtor executed security documents in favour of the lenders in October–November 2012.
The debtor failed to adhere to repayment obligations, leading to the classification of its account as a Non‑Performing Asset (NPA) on 29 June 2019. Indian Overseas Bank issued a demand notice on 19 August 2019 and a loan recall notice on 30 June 2020. As of 20 November 2025, the outstanding liability stood at Rs 117.74 crore, inclusive of interest at 11% per annum and penal interest at 2% per annum.
The debtor's audited financial statements for 2021‑22, 2022‑23, and 2023‑24 acknowledged the outstanding dues.
The bench noted that the NCLT's scope of inquiry is limited to examining whether there exists a financial debt and default. Citing Innoventive Industries Ltd. v. ICICI Bank it reiterated that once default is established, the application must be admitted unless incomplete.
The bench examined the documents and found that IL&FS Financial Services Limited had sanctioned a term loan in favour of the Corporate Debtor, and a portion of the said debt amounting to Rs 70 Crores was assigned to Indian Overseas Bank. Thus, it was held that this amount claimed by the bank falls within the definition of Financial Debt under the Code.
It was also noted that the application was filed within the limitation, and the acknowledgements in the audited financial statements clearly established the liability of the debtor.
Accordingly, the petition was admitted under, and a moratorium was imposed. Mavent Restructuring Services LLP was appointed as Interim Resolution Professional (IRP).
For Applicants: Advocates Kartik Malhotra, S. Santanam Swaminadhan and Akhil Sarathy