# Abhyudaya Co-operative Bank Limited vs. A.Navinchandra Steels Private Limited

> NCLT judgment dated 2026-09-11. Citation: TCN-2026-NCLT-00976. Abhyudaya Co-operative Bank Limited (Financial Creditor) filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 11 Sept 2026
- **Citation:** TCN-2026-NCLT-00976
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/a-navinchandra-steels-private-limited-0mw5v

## Summary

### Background

Abhyudaya Co-operative Bank Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against A.Navinchandra Steels Private Limited (Corporate Debtor) due to a default on credit facilities amounting to Rs. 70,71,96,999.99/-. The Corporate Debtor raised several objections, including that the application was time-barred, the underlying arbitration award was void, the Financial Creditor failed to comply with MSME Notification guidelines, the NCLT lacked jurisdiction over contractual disputes, and parallel recovery proceedings were ongoing. The Corporate Debtor also claimed damages exceeding the Financial Creditor's claim.

## Facts

Abhyudaya Co-operative Bank Ltd (Financial Creditor) filed a Section 7 IBC application against A.Navinchandra Steels Private Limited (Corporate Debtor) on 25.10.2025.

The application was for initiating Corporate Insolvency Resolution Process (CIRP) due to a default on credit facilities.

The amount claimed in default by the Financial Creditor is Rs. 70,71,96,999.99/-.

The Financial Creditor had renewed Cash credit (Rs. 35 Crore) and Letter of Credit (Rs. 15 Crore) facilities for the Corporate Debtor on 01.11.2019.

The Corporate Debtor's account was declared Non-Performing Asset (NPA) on 13.02.2020.

The Financial Creditor issued a recall notice on 05.07.2021 for outstanding amounts.

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## Issues and analysis

### Issue 1: Whether the Section 7 IBC …

**Ratio:** An arbitral award or decree for money in favour of the Financial Creditor gives rise to a

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**Reasoning:** The Supreme Court in Dena Bank v. C. Shivakumar Reddy (2021) 10 SCC 330 established that

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**Interpretation:** The date of NPA classification (13.02.2020) becomes an academic date once an

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**Application:** The NCLT applied this principle, finding the Section 7 application to be well

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Abhyudaya…
- **Respondents:** A.Navinchandra…
- **Other parties:** Mumbai Bench…; Anil Vrijdas…
- **Advocates:** Madhur…; Gautam T…; +4 more

## Timeline

- **2004-01-09 — Initial Credit Facility…**: Initial cash credit facility account Number CC/513 for Rs. 1.60 Crore was sanctioned by…
- **2011-03-05 — Registered Mort…**: A Registered Deed of…

## 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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