# In the matter of KRISHNAGANGA SPINNING MILLS PRIVATE LIMITED

> NCLT judgment dated 2026-03-10. Citation: TCN-2026-NCLT-00204. Axis Bank Ltd., a Financial Creditor, filed a petition under Section 7 of the IBC, 2016 against…

- **Court:** NCLT
- **Order date:** 10 Mar 2026
- **Citation:** TCN-2026-NCLT-00204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/krishnaganga-spinning-mills-private-limited-999e5f7d

## Summary

### Background

Axis Bank Ltd., a Financial Creditor, filed a petition under Section 7 of the IBC, 2016 against Krishna Ganga Spinning Mills Ltd., a Corporate Debtor, for defaulting on a debt of Rs. 34,07,53,683/-.

## Facts

The Corporate Debtor defaulted on credit facilities availed from the Financial Creditor, leading to the account being classified as NPA on 23.11.2024.

The Financial Creditor issued a recall-cum-guarantee invocation notice to the Corporate Debtor on 15.02.2025, which was received on 18.02.2025.

The amount of debt is more than Rupees one crore.

The Financial Creditor proposed the name of Rajesh Chillale as the Interim Resolution Professional (IRP).

The Corporate Debtor raised objections regarding the maintainability of the petition due to issues with the power of attorney of the Financial Creditor's representative.

The Financial Creditor submitted documents, including the power of attorney, board resolutions, and financial records, to support the petition.

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## Issues and analysis

### Issue 1: Whether the present Petition is filed …

**Ratio:** The petition was filed

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**Reasoning:** The date of default was mentioned as 23.11.2024, and the petition was e-filed on

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**Interpretation:** The Adjudicating Authority considered the dates and concluded that the petition

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**Application:** The Adjudicating Authority determined that the petition was filed within the

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## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Axis Ban…; Axis Bank L…
- **Respondents:** Krishna Ganga…
- **Other parties:** Rajesh Ch…
- **Advocates:** Durga Bose…; Y.Surya Na…

## Timeline

- **2021-11-23 — Corporate Debtor…**: The Corporate Debtor approached the Financial Creditor for credit facilities amounting to…
- **2021-12-15 — Financial Creditor…**: The Financial Creditor sanctioned Term…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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