# In the matter of MBL (MP) TOLL ROAD COMPANY LIMITED

> NCLT judgment dated 2025-01-21. Citation: TCN-2025-NCLT-00600. Punjab National Bank (International) Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 21 Jan 2025
- **Citation:** TCN-2025-NCLT-00600
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mbl-mp-toll-road-company-limited-272b3c0e

## Summary

### Background

Punjab National Bank (International) Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S MBL (MP) Toll Road Company Limited, citing a total financial default of USD 53,38,895.44. The application was initially delayed due to inconsistencies, requiring clarifications from the applicant. The corporate debtor, MBL (MP) Toll Road Company Limited, was incorporated on 31.10.2011. The financial creditor, Punjab National Bank International Limited, is a private company incorporated under the Companies Act, 1985.

## Facts

Punjab National Bank (International) Limited ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S MBL (MP) Toll Road Company Limited ('Corporate Debtor'). The application was based on a total financial default of USD 53,38,895.44. The Corporate Debtor was incorporated on 31.10.2011. The Financial Creditor sanctioned a Term Loan Facility of USD 8.06 Million to the Corporate Debtor on 02.03.2012. The Corporate Debtor entered into a Loan Facility Agreement with the Financial Creditor on 13.04.2012. MBL Infrastructure Ltd. gave a Corporate Guarantee dated 17.04.2012 in favor of the Financial Creditor. The Corporate Debtor's loan account was classified

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## Issues and analysis

### Issue 1: Whether existence of a dispute between the FC and CD due to breach of Escrow Agreement dated …

**Ratio:** A pre-existing dispute does not act as a defense to a Section 7 application, unlike a

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**Reasoning:** The tribunal observed that the jurisdiction in respect of the dispute relating to the

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**Interpretation:** The court interpreted that even if there is a dispute regarding the Escrow

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**Application:** The court applied the ratio to the facts by stating that the existence of a

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Punjab National…
- **Respondents:** M/s MBL (MP) Toll…

## Timeline

- **2011-10-31 — Incorporation of…**: M/S MBL (MP) Toll Road…
- **2012-03-02 — Sanction…**: The Financial Creditor sanctioned a 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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