# In the matter of Trinity Auto Components Ltd. vs. Axis Bank Ltd.

> NCLAT judgment dated 2025-09-11. Citation: TCN-2025-NCLAT-00479. The case involves an appeal filed by Trinity Auto Components Ltd. against an order passed by…

- **Court:** NCLAT
- **Order date:** 11 Sept 2025
- **Citation:** TCN-2025-NCLAT-00479
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/trinity-auto-components-ltd-vs-axis-bank-ltd-6511ca84

## Summary

### Background

The case involves an appeal filed by Trinity Auto Components Ltd. against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, regarding an application (IA No. 2585 of 2019) moved by the appellant. The appellant was under a BIFR scheme, and disputes arose regarding interest charged by Axis Bank. The appellant filed an application under Section 10 of the IBC, and a resolution plan was approved.

## Facts

Trinity Auto Components Ltd. was engaged in the manufacture of critical closed die forged parts for engines and chassis for heavy commercial vehicles.

The company was taken over for rehabilitation by Tarini Steels Ltd. under a scheme sanctioned by the erstwhile Board for Industrial & Financial Reconstruction (BIFR).

Axis Bank Ltd., the respondent, continued to charge interest between 14.75% and 16.00% p.a. against 12% p.a. as against 12% p.a. w.e.f. 31.03.2011, despite the BIFR scheme.

The appellant filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, and CIRP was initiated on 25.05.2017.

A resolution plan was approved by the CoC and the adjudicating authority on 22.01.2018.

…

## Issues and analysis

### Issue 1: Whether the terms of the BIFR scheme continue to apply after the approval of the resolution plan …

**Ratio:** The approved resolution plan

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**Reasoning:** The Tribunal relied on the 'clean slate' principle and the binding nature of the approved

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**Interpretation:** The approval of a resolution plan extinguishes any prior claims or concessions

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**Application:** The appellant's claim for benefits under the BIFR scheme was rejected as the

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## Parties

- **Judges:** Mohd. Faiz Alam…; Naresh Sa…
- **Respondents:** Trinity Auto…; Axis Ban…
- **Advocates:** Sanat Jar…; Purti G…; +6 more

## Timeline

- **2014-11-07 — BIFR Scheme Sa…**: The company was taken over for its rehabilitation by Tarini Steels Ltd. under the scheme…
- **2015-05-15 — Modified by Delhi High…**: The BIFR scheme was also modified by the Hon'ble Delhi High Court's orders dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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