# State Bank of India vs. KM Toll Road Private Limited

> NCLT judgment dated 2026-07-22. Citation: TCN-2026-NCLT-00799. State Bank of India (Financial Creditor) initiated CIRP against KM Toll Road Private Limited…

- **Court:** NCLT
- **Order date:** 22 Jul 2026
- **Citation:** TCN-2026-NCLT-00799
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/state-bank-of-india-vs-km-toll-road-private-limited-lnmg5

## Summary

### Background

State Bank of India (Financial Creditor) initiated CIRP against KM Toll Road Private Limited (Corporate Debtor) under Section 7 of IBC, 2016, for a default of Rs. 122.12 crores. The Corporate Debtor, an SPV of Reliance Infrastructure Limited, had secured term loans from a consortium of banks for a highway project. The loan account was classified as NPA, and despite part payments and OTS proposals, the debt remained outstanding. The Corporate Debtor contested the petition on grounds of limitation, solvency, alleged violation of the Inter-Creditor Agreement, and pending arbitration/OTS.

## Facts

State Bank of India (Financial Creditor/Petitioner) filed a petition under Section 7 of the IBC, 2016, against M/s. KM Toll Road Private Limited (Corporate Debtor/Respondent).

The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP) for an alleged default in repayment of Rs. 122,12,84,985/- (excluding accrued and penal interest).

The National Highways Authority of India (NHAI) selected Reliance Infrastructure Limited (‘RIL') for a highway project, and the Corporate Debtor was incorporated by RIL on 04.02.2010 as a special purpose vehicle (SPV).

The Corporate Debtor entered into a Concession Agreement dated 10.03.2010 for implementing the highway project for 25 years, with an estimated project cost of Rs. 789 crores.

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## Issues and analysis

### Issue 1: Whether the petition filed by the …

**Ratio:** Acknowledgment of debt in revival letters and balance sheets, along with part payments

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**Reasoning:** The Corporate Debtor issued Revival Letters on 02.01.2017 and 13.09.2017, acknowledging

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**Interpretation:** The legal principle of acknowledgment of debt and part payment as per Section

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**Application:** The Tribunal found that the Corporate Debtor's acknowledgments and part payment

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## Parties

- **Judges:** Hariharan…; LAKSHMI G…
- **Appellants:** State Bank of…
- **Respondents:** KM Toll Road…
- **Other parties:** Committee of…; State Bank of…; +12 more
- **Advocates:** Pradeep Sa…; Shriraj Kh…; +4 more

## Timeline

- **2010-01-12 — Letter of Acceptance…**: NHAI selected Reliance Infrastructure Limited (‘RIL') for a highway project and issued…
- **2010-02-04 — Corporate Debtor…**: KM Toll Road Private Limited was incorporated…

## 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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