# Kotak Mahindra Bank Limited vs. Simaaya Ensembles Private Limited

> NCLT judgment dated 2026-09-18. Citation: TCN-2026-NCLT-01147. Kotak Mahindra Bank Limited (Financial Creditor) filed a Section 7 IBC application against…

- **Court:** NCLT
- **Order date:** 18 Sept 2026
- **Citation:** TCN-2026-NCLT-01147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/simaaya-ensembles-private-limited-8fqqh

## Summary

### Background

Kotak Mahindra Bank Limited (Financial Creditor) filed a Section 7 IBC application against Simaaya Ensembles Private Limited (Corporate Debtor), which acted as a corporate guarantor for Alipore Condominiums & Investments Private Limited (Principal Borrower). The Principal Borrower defaulted on multiple LAP facilities and a Working Capital Term Loan, leading to the classification of accounts as Non-Performing Assets (NPA). The Corporate Debtor had executed unconditional corporate guarantees and created an equitable mortgage to secure these debts. The total outstanding debt claimed by the Financial Creditor is Rs. 7,47,10,663.45/-.

## Facts

Kotak Mahindra Bank Limited (Financial Creditor/Applicant) filed a company petition under Section 7 of the IBC against Simaaya Ensembles Private Limited (Corporate Debtor/Respondent) for initiation of CIRP.

The Corporate Debtor acted as a Corporate Guarantor for credit facilities availed by Alipore Condominiums & Investments Private Limited (Principal Borrower - ACIPL).

The Principal Borrower defaulted in repayment of a financial debt amounting to Rs. 7,47,10,663.45/-.

ACIPL initially approached erstwhile ING Vysya Bank Ltd. (later merged with Kotak Mahindra Bank Ltd.) for financial facilities around June 2013.

Kotak Mahindra Bank Limited advanced multiple LAP facilities (Loan I, Loan II, Loan III) and a Working Capital Term Loan (Loan IV) under the ECLGS scheme to ACIPL.

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## Issues and analysis

### Issue 1: Whether the scope of inquiry under Section 7 of the Insolvency and Bankruptcy Code, 2016, extends …

**Ratio:** The scope of inquiry under Section 7 of the IBC is limited to ascertaining the existence

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**Reasoning:** Section 7(4) and 7(5) of the IBC specify that the Adjudicating Authority must ascertain

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**Interpretation:** The NCLT's role is primarily to verify debt and default, not to assess the

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**Application:** The NCLT will not consider the Corporate Debtor's solvency or the Financial

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## Parties

- **Judges:** BIDISHA BA…; Rekha Kantilal…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Simaaya Ensembles…
- **Other parties:** Committee of…; AAA Insolvency…
- **Advocates:** Shiv Ratan…; Tanuj Kak…; +1 more

## Timeline

- **June, 2013 — Initial Loan Ap…**: Principal Borrower (ACIPL) approached erstwhile ING Vysya Bank Ltd. for financial…
- **29.06.2013 — Loan I Sa…**: Financial Creditor advanced LAP facility (Loan I) for Rs. 5,30,00,000/- under sanction…

## 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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