# Bank of India Limited vs. Distribution Logistics Infrastructure Pvt. Ltd

> NCLT judgment dated 2026-05-14. Citation: TCN-2026-NCLT-00503. Bank of India Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 May 2026
- **Citation:** TCN-2026-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/bank-of-india-limited-vs-distribution-logistics-infrastructure-pvt-ltd-vuldh

## Summary

### Background

Bank of India Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Distribution Logistics Infrastructure Private Limited (Corporate Debtor). The Corporate Debtor, engaged in the logistics and warehousing industry, had availed various credit facilities from a consortium of banks, including the Financial Creditor, which were restructured multiple times. Despite restructuring, the Corporate Debtor faced liquidity issues, defaulted on payments, and its account was classified as a Non-Performing Asset (NPA) on 28.03.2023. A demand notice was issued under the SARFAESI Act, 2002, for outstanding dues amounting to Rs. 77.30 Crores as of 30.09.2024.

## Facts

Bank of India Limited (Applicant/Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency (Application to Adjudicating Authority Rules 2016).

The Applicant is a Banking Company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970.

The application was affirmed by Mr. Parag Bhanagay, Chief Manager, on 17.09.2025, who was authorized on 10.09.2025.

The Respondent, Distribution Logistics Infrastructure Private Limited (Corporate Debtor), was incorporated on 16.12.1992 and is engaged in the Logistics and Warehousing Industry.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016, is …

**Ratio:** The Adjudicating Authority, in a Section 7 application, is primarily concerned with

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**Reasoning:** The Corporate Debtor admitted the existence of debt and default. The various OTS

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**Interpretation:** The court interprets Section 7 of the IBC to mean that once a financial debt

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**Application:** In the present case, the Corporate Debtor admitted the debt and default. While

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Bank of India…
- **Respondents:** Distribution…; Distribution…
- **Other parties:** Punjab National…; Bank of B…; +6 more
- **Advocates:** Ricky S…; Anupam La…; +1 more

## Timeline

- **2009-06-06 — Board Resolution for…**: Directors of Vikram Logistics and Maritime Services Private Limited (now Distribution…
- **2009-06-27 — Common Loan A…**: A common Loan Agreement was executed between Vikram Logistics & Maritime Service (P) Ltd.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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