# Kotak Mahindra Bank Limited vs. Avarsekar And Sons Private Limited

> NCLT judgment dated 2026-09-22. Citation: TCN-2026-NCLT-01063. Kotak Mahindra Bank Limited (Financial Creditor) filed a Section 7 application under the IBC,…

- **Court:** NCLT
- **Order date:** 22 Sept 2026
- **Citation:** TCN-2026-NCLT-01063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/kotak-mahindra-bank-limited-vs-avarsekar-and-sons-private-limited-jbst4

## Summary

### Background

Kotak Mahindra Bank Limited (Financial Creditor) filed a Section 7 application under the IBC, 2016, against Avarsekar And Sons Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor acted as a Corporate Guarantor for the debts of the Principal Borrower, M/s. Unity Infra Projects Limited. Financial facilities were initially sanctioned by ING Vysya Bank Limited (later amalgamated with Kotak Mahindra Bank Limited). The borrower faced financial difficulties, leading to a Corporate Debt Restructuring (CDR) package. Despite restructuring, the borrower defaulted, and its account was declared an NPA on 30.06.2015. The Financial Creditor invoked the guarantees on 07.10.2019 and subsequently obtained a judgment from

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## Facts

C.P. (IB) No.252/MB/2026 (Application) was filed on 25.02.2026 by Kotak Mahindra Bank Limited (Financial Creditor) against Avarsekar And Sons Private Limited (Corporate Debtor) under Section 7 of the IBC, 2016.

The Financial Creditor claimed an amount of Rs. 68,48,63,360.22 in default as on 31.08.2025.

The date of default is stated as 23.09.2023 and the date of NPA is stated as 30.06.2015.

The Corporate Debtor is a Corporate Guarantor for the debts of the Principal Borrower, M/s. Unity Infra Projects Limited.

Financial facilities were originally sanctioned by ING Vysya Bank Limited, which amalgamated with Kotak Mahindra Bank Limited on 01.04.2015.

Working-capital facilities aggregating to Rs. 5,000 lakhs were initially sanctioned vide Sanction Letter dated 14.08.2008.

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by the Financial Creditor is barred by limitation, …

**Ratio:** A judgment/decree for money or a Recovery Certificate in favour of a Financial Creditor

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**Reasoning:** The Hon'ble Supreme Court in Dena Bank (Now Bank of Baroda) v. C. Shivakumar Reddy &

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**Interpretation:** The three-year limitation period for filing a Section 7 application begins from

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**Application:** The DRT Judgment was dated 17.08.2023, and the Recovery Certificate was issued

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Avarsekar And…
- **Other parties:** Committee of…; Sanjay Su…; +2 more
- **Advocates:** Rohan Ag…; Chinm…; +2 more

## Timeline

- **2008-08-14 — Initial Sanction of…**: Financial facilities aggregating to Rs. 5,000 lakhs were initially sanctioned by ING…
- **2009-06-09 — Facilities Renewal/Revie…**: Aforesaid facilities were…

## 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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