# Kotak Mahindra Bank Limited vs. Avarsekar And Kejriwal Constructions Pvt. Ltd

> NCLT judgment dated 2026-09-22. Citation: TCN-2026-NCLT-01062. Kotak Mahindra Bank Limited, as Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Sept 2026
- **Citation:** TCN-2026-NCLT-01062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/kotak-mahindra-bank-limited-vs-avarsekar-kejriwal-constructions-pvt-limited-9o361

## Summary

### Background

Kotak Mahindra Bank Limited, as Financial Creditor, filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avarsekar & Kejriwal Constructions Pvt. Limited, the Corporate Debtor. The Corporate Debtor acted as a corporate guarantor for M/s Unity Infra Projects Limited, the principal borrower, which had defaulted on financial facilities originally sanctioned by ING Vysya Bank Limited (later merged with Kotak Mahindra Bank). The principal borrower's account was declared an NPA on 30.06.2015, and the corporate guarantee was invoked on 07.10.2019. The Financial Creditor had previously obtained a judgment and a Recovery Certificate from the DRT, Delhi, against the Corporate Debtor for the outstanding dues.

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## Facts

Kotak Mahindra Bank Limited (Financial Creditor) filed an application under Section 7 of the IBC, 2016, against Avarsekar & Kejriwal Constructions Pvt. Limited (Corporate Debtor).

The application was filed on 25.02.2026, seeking to initiate Corporate Insolvency Resolution Process (CIRP).

The Corporate Debtor acted as a corporate guarantor for M/s Unity Infra Projects Limited, the principal borrower.

The principal borrower's account was declared a Non-Performing Asset (NPA) on 30.06.2015.

The Corporate Guarantee furnished by the Corporate Debtor was invoked by the Financial Creditor on 07.10.2019.

The Financial Creditor had instituted Original Application No. 934/2019 before the Debts Recovery Tribunal (DRT), New Delhi, against the Corporate Debtor.

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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 barred …

**Ratio:** A judgment/decree for money or a Recovery Certificate issued by a competent tribunal

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**Reasoning:** The Corporate Debtor argued that the petition was time-barred as the guarantee was

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**Interpretation:** The date of default for the purpose of Section 7 application, when a DRT

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**Application:** Since the DRT Judgment was dated 17.08.2023 and the Recovery Certificate

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Avarsekar &…; Avarsekar And…
- **Other parties:** Committee of…; Swapnil…; +1 more
- **Advocates:** Rohan Ag…; Chinm…; +2 more

## Timeline

- **2008-08-14 — Initial Sancti…**: Working-capital facilities aggregating to Rs. 5,000 lakhs were initially sanctioned by…
- **2014-12-16 — CDR Restructuring…**: The Corporate Debt Restructuring (CDR) Empowered Group approved a restructuring package…

## 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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