# In the matter of PRIME MOVERS AUTO ASSOCIATES PRIVATE LIMITED

> NCLT judgment dated 2026-03-19. Citation: TCN-2026-NCLT-00254. ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Mar 2026
- **Citation:** TCN-2026-NCLT-00254
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/prime-movers-auto-associates-private-limited-cd3e4d56

## Summary

### Background

ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Prime Movers Auto Associates Private Limited, citing default on credit facilities.

## Facts

Prime Movers Auto Associates Private Limited availed credit facilities from ICICI Bank Limited starting June 3, 2014.

The credit facilities included Cash Credit, WCDL, and Bank Guarantee, with the total sanctioned limit reaching Rs. 222.5 million by August 19, 2023.

ECLGS facilities were sanctioned on August 14, 2020 (WCTL-1 for 233.6 million) and June 17, 2022 (WCTL-2 for ₹15.4 million).

The account of Prime Movers Auto Associates Private Limited was classified as NPA on October 29, 2024.

ICICI Bank issued a Loan Recall Notice on December 4, 2024, and invoked personal and corporate guarantees on December 20, 2024.

Outstanding dues as of March 2, 2025, amounted to ₹214.4 million.

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## Issues and analysis

### Issue 1: Whether a financial …

**Ratio:** The Adjudicating Authority relied on sanction letters, credit arrangement letters,

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**Reasoning:** The documents clearly established that disbursements were made against consideration for

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**Interpretation:** The Adjudicating Authority interpreted Section 5(8) of the Code to include the

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**Application:** The Adjudicating Authority applied the definition of financial debt under

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** ICICI Bank…
- **Respondents:** Prime Movers Auto…
- **Other parties:** Anup Kumar…
- **Advocates:** Dripto Ma…; Aparajit…; +1 more

## Timeline

- **2014-06-03 — Initial Credit…**: Prime Movers Auto Associates Private Limited availed a credit facility of ₹90 million…
- **2020-08-14 — ECLGS Faci…**: ECLGS facilities were sanctioned…

## 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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