# Indian Overseas Bank vs. Mhow Ghatabill Toll Roads Pvt. Ltd.

> NCLT judgment dated 2026-07-09. Citation: TCN-2026-NCLT-00613. Indian Overseas Bank, as a Financial Creditor, filed a petition under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 9 Jul 2026
- **Citation:** TCN-2026-NCLT-00613
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/indian-overseas-bank-vs-mhow-ghatabill-toll-roads-pvt-ltd-vf11v

## Summary

### Background

Indian Overseas Bank, as a Financial Creditor, filed a petition under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Mhow Ghatabill Toll Roads Pvt. Ltd., the Corporate Debtor. The petition stemmed from the Corporate Debtor's failure to repay a debt of INR 70 Crores, which was assigned to Indian Overseas Bank from an original loan sanctioned by IL&FS Financial Services Limited. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on June 29, 2019, and despite demand and recall notices, an outstanding amount of Rs. 1,17,74,94,044.88 remained unpaid as of November 20, 2025.

## Facts

Indian Overseas Bank filed a petition on 01.04.2026 under Section 7 of the IBC, 2016, to initiate CIRP against M/s Mhow Ghatabill Toll Roads Private Limited.

M/s Mhow Ghatabill Toll Roads Private Limited was incorporated on 18.08.2011 and is engaged in developing a four-lane toll road project.

IL&FS Financial Services Limited sanctioned a term loan of Rs. 217.00 Crores to the Corporate Debtor on 02.03.2012.

A portion of this debt, INR 70 Crores, was assigned to Indian Overseas Bank on 01.10.2012, which the Corporate Debtor accepted on 27.09.2012.

The Corporate Debtor failed to adhere to repayment obligations, and its account was classified as a Non-Performing Asset (NPA) on 29.06.2019.

Demand notices were issued on 19.08.2019 and a loan recall notice on 30.06.2020.

…

## Issues and analysis

### Issue 1: Whether there exists a financial debt and a default …

**Ratio:** A financial debt exists when money is disbursed against the consideration for the time

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**Reasoning:** The Adjudicating Authority found that IL&FS Financial Services Limited sanctioned a

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the

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**Application:** In this case, the term loan and its assignment to Indian Overseas Bank

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## Parties

- **Judges:** ANUPINDER SINGH…; RAVINDRA CHATURVED…
- **Appellants:** Indian Overseas…
- **Respondents:** Mhow Ghatabill…
- **Other parties:** IL & FS Financial…; Mavent Restructuri…
- **Advocates:** Kartik Ma…; S. Santanam…; +1 more

## Timeline

- **2011-08-18 — Incorporation of…**: M/s Mhow Ghatabill Toll Roads Private Limited was incorporated under the Companies Act,…
- **2012-03-02 — Loan Sanc…**: IL&FS Financial Services Limited sanctioned a term loan of Rs. 217.00 Crores to the…

## 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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