# Tata Capital Financial Services Limited vs. Neel Motors LLP & Ors.

> HC judgment dated 2026-07-24. Citation: TCN-2026-HC-00041. Tata Capital Financial Services Limited (Petitioner) extended financial assistance to Neel Motors…

- **Court:** HC
- **Order date:** 24 Jul 2026
- **Citation:** TCN-2026-HC-00041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/tata-capital-financial-services-limited-vs-neel-motors-llp-ors-fs8l9

## Summary

### Background

Tata Capital Financial Services Limited (Petitioner) extended financial assistance to Neel Motors LLP (Respondent No. 1), with Respondent Nos. 2-5 acting as guarantors. The Petitioner initiated a Section 9 Arbitration Petition in 2021 and also a Corporate Insolvency Resolution Process (CIRP) against Respondent No. 1, which subsequently failed, leading to its liquidation. Following this, the Petitioner filed Section 95 IBC proceedings against the personal guarantors (Respondent Nos. 2, 3, 4), which triggered an interim moratorium under Section 96 of the IBC, preventing further proceedings against them.

## Facts

The Petitioner's name has been changed to Tata Capital Limited due to a scheme of arrangement involving the Petitioner and other companies.

The Petitioner extended financial assistance to Respondent No. 1 (Neel Motors LLP) through a Channel Finance Agreement.

Respondent Nos. 2, 3, 4 (individuals) and Respondent No. 5 (Shah Autolinks LLP) are guarantors for Respondent No. 1.

The Letters of Guarantee contain an arbitration clause with the seat of arbitration in Mumbai.

The Petitioner filed a Commercial Arbitration Petition under Section 9 of the Arbitration and Conciliation Act, 1996, in 2021.

The Petitioner also initiated Corporate Insolvency Resolution Process (CIRP) against Respondent No. 1 in 2021, leading to a moratorium under Section 14 of the IBC.

…

## Issues and analysis

### Issue 1: Whether the interim moratorium under Section 96 of the IBC, triggered by an application under …

**Ratio:** The amendment to Section 96(4) of the IBC, which states that Section 96 provisions shall

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**Reasoning:** The Court interpreted the phrase "where an application is filed" to encompass

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**Interpretation:** The Court interpreted "is filed" broadly to include applications that

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**Application:** Applying these principles, the Court held that the moratorium under Section 96

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## Parties

- **Judges:** SOMASEKHAR…
- **Appellants:** Tata Capital…; Tata Capital…
- **Respondents:** Neel Moto…; Akshay Suni…; +3 more
- **Other parties:** Committee of…; Insolvency…
- **Advocates:** Rohan S…; Pooja Jh…; +2 more

## Timeline

- **2021 — Petition…**: Commercial Arbitration Petition No. 620 of 2021 filed by Tata Capital Financial Services…
- **2021 — CIRP init…**: Tata Capital Financial Services Limited initiated Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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