# Axis Bank Ltd vs M/s. IMOST Academy (India) Private Limited

> NCLT judgment dated 28 Apr 2026. Citation: TCN-2026-NCLT-00429. Axis Bank Ltd, the Financial Creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 28 Apr 2026
- **Citation:** TCN-2026-NCLT-00429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/axis-bank-ltd-vs-ms-imost-academy-57ffc5ae

## Summary

### Background

Axis Bank Ltd, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against M/s. IMOST Academy (India) Private Limited, the Corporate Debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP), declare a moratorium, and appoint an Interim Resolution Professional (IRP) due to the Corporate Debtor's default on financial debt. The Corporate Debtor, a privately owned educational institution, had availed credit facilities from Axis Bank Ltd in 2019 for the acquisition of land, construction of buildings, and procurement of equipment for a training institute under the SME Plus Scheme and

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## Facts

Axis Bank Ltd, the Financial Creditor, filed a petition under Section 7 of the IBC, 2016, against M/s. IMOST Academy (India) Private Limited, the Corporate Debtor.

The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) and appoint an Interim Resolution Professional (IRP).

The Corporate Debtor is a privately owned educational institution in Ernakulam, Kerala.

In 2019, the Corporate Debtor availed credit facilities/financial assistance from Axis Bank Ltd for procuring land, constructing buildings, and acquiring equipment for a training institute.

The credit facilities sanctioned included a Term Loan of Rs. 6,50,00,000/- and a Working Capital Loan (Cash Credit) of Rs. 75,00,000/- under the SME Plus Scheme.

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## Issues and analysis

### Issue 1: Whether a Section 7 petition for Corporate Insolvency Resolution Process (CIRP) can be initiated …

**Ratio:** The liability of the principal borrower and the guarantor is joint, several, and

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**Reasoning:** The Adjudicating Authority relied on NCLAT judgment in Mr. Babumanoharan Jai Kumar

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**Interpretation:** Section 7 of the IBC, as interpreted by higher courts, does not restrict a

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**Application:** Axis Bank Ltd, as the Financial Creditor, had initiated CIRP against the

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## Parties

- **Judges:** SHRI. VINA…
- **Appellants:** Axis Ban…
- **Respondents:** M/s. IMOST…
- **Other parties:** Corporate…; Insolvency and…; +9 more

## Timeline

- **2019-10-17 — Sanction…**: Sanction letter issued for credit…
- **2019-10-28 — Term Loan Ag…**: Term Loan Agreement…

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