# In the matter of T & R Auto Private Limited

> NCLT judgment dated 2025-08-22. Citation: TCN-2025-NCLT-01236. Kotak Mahindra Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Aug 2025
- **Citation:** TCN-2025-NCLT-01236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/t-amp-r-auto-private-limited-ebbf2281

## Summary

### Background

Kotak Mahindra Bank Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against T & R Auto Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to default in repayment of loan facilities.

## Facts

T & R Auto Private Limited availed a loan facility of Rs. 4,67,00,000/- from Kotak Mahindra Bank Limited, disbursed on 02.08.2017.

The Corporate Debtor executed a Master Facility Agreement, Guarantee Deed, Memorandum of Entry, and Deed of Settlement, all dated 25.07.2017.

Kotak Mahindra Bank Limited sanctioned an additional sum of Rs. 44,05,548/- as working capital assistance under the Emergency Credit Line Guarantee Scheme (ECLGS).

Bajaj Auto Limited invoked a Bank Guarantee on 23.07.2020, which was earlier issued by the Financial Creditor.

The account of the Corporate Debtor was classified as Non-Performing Asset (NPA) on 29.10.2020.

Kotak Mahindra Bank Limited issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 08.12.2021.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established the existence of a financial debt and default …

**Ratio:** The Adjudicating Authority held that the Financial Creditor has duly established the

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**Reasoning:** The Corporate Debtor availed loan facilities from the Financial Creditor, defaulted in

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, requires the Applicant

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**Application:** The Adjudicating Authority undertook a summary adjudication to ascertain and

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/s. Kotak…
- **Respondents:** M/s. T & R Auto…
- **Other parties:** M/s. AAA Insolvenc…
- **Advocates:** Ritika…; Shalya Ag…

## Timeline

- **2017-07-21 — Sanction…**: Kotak Mahindra Bank Limited issued a sanction letter for a loan facility of Rs.…
- **2017-08-02 — Disbursement…**: The loan facility of Rs. 4,67,00,000/- was…

## 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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