# Bank of India vs. Shri Karvir Nivasini Mahalaxmi Ispat Private Limited

> NCLT judgment dated 2026-08-18. Citation: TCN-2026-NCLT-00836. Bank of India, a Financial Creditor, filed an application under Section 7 of the IBC, 2016, to…

- **Court:** NCLT
- **Order date:** 18 Aug 2026
- **Citation:** TCN-2026-NCLT-00836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/bank-of-india-vs-shri-karvir-nivasini-mahalaxmi-ispat-private-limited-jzgkp

## Summary

### Background

Bank of India, a Financial Creditor, filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shri Karvir Nivasini Mahalaxmi Ispat Private Limited, the Corporate Debtor. The application, filed on 13.01.2026, claimed a default of Rs. 23,66,42,307.14 as of 02.12.2025, with the date of default being 17.09.2024 and the account classified as NPA on 15.12.2024. The Corporate Debtor disputed the debt, default date, NPA classification, and the authority of the applicant to file the petition, also arguing that it was a solvent MSME deserving a chance for revival and that the petition was a recovery mechanism.

## Facts

Bank of India, as Financial Creditor, filed C.P. (IB) No. 43/MB/2026 on 13.01.2026 under Section 7 of the IBC against Shri Karvir Nivasini Mahalaxmi Ispat Private Limited, the Corporate Debtor.

The application sought to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

The application was affirmed by Mr. Umesh Dataram Mane, an authorised signatory of Bank of India.

The amount claimed to be in default by Bank of India is Rs. 23,66,42,307.14 as of 02.12.2025.

The stated date of default is 17.09.2024, and the date of NPA classification is 15.12.2024.

Bank of India had sanctioned various credit facilities, including a Cash Credit Facility (enhanced to Rs. 15 Crores) and a GECL facility (Rs. 1.50 Crores), which were renewed periodically.

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## Issues and analysis

### Issue 1: Whether the officer who signed and instituted the Section 7 petition on behalf of the Financial …

**Ratio:** Procedural objections relating to authorization cannot defeat a proceeding where the

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**Reasoning:** The Financial Creditor produced Power of Attorney and internal delegation documents

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**Interpretation:** The requirement for authorization to file a Section 7 application should be

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**Application:** The Corporate Debtor's objection was rejected because the Financial Creditor

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Bank of…
- **Respondents:** Karvir Nivasini…
- **Other parties:** Purusottam…
- **Advocates:** Adv.Deepak…; Avinash R.…; +2 more

## Timeline

- **2001 — Initial Cash Credit…**: Bank of India sanctioned a Cash Credit facility of Rs. 2,00,00,000/- to the Corporate…
- **2021 — GECL Facility S…**: A Guaranteed Emergency Credit Line (GECL)…

## 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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