# In the matter of Kamdhenu Steels and Alloys Limited

> NCLT judgment dated 2025-09-09. Citation: TCN-2025-NCLT-01404. Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Sept 2025
- **Citation:** TCN-2025-NCLT-01404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/kamdhenu-steels-and-alloys-limited-d2c5857a

## Summary

### Background

Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kamdhenu Steels and Alloys Limited, claiming a default of Rs. 9,44,95,594.97 as of 20.02.2025.

## Facts

Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Kamdhenu Steels and Alloys Limited.

The claimed default amount was Rs. 9,44,95,594.97 as of 20.02.2025.

Kamdhenu Steels and Alloys Limited was incorporated on 23.12.2002.

The Corporate Debtor argued that the loan transaction was vitiated due to collusion between the Financial Creditor and Yes Bank.

The Corporate Debtor alleged that the Financial Creditor permitted the transfer of mortgaged property to third parties.

The Corporate Debtor claimed that Ashiana Ispat Ltd. made part payments of approximately ₹1.14 crore.

The Financial Creditor issued a Loan Recall Notice dated 14.01.2025.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The application is not maintainable if there are disputed questions of fact and

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**Reasoning:** The Adjudicating Authority's jurisdiction is confined to examining whether there exists a

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**Interpretation:** Section 7 proceedings are not meant to resolve complex disputes involving fraud

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**Application:** In this case, the allegations of collusion between the Financial Creditor and

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Kamdhenu Steels…
- **Other parties:** Naresh…; Puneet…; +6 more
- **Advocates:** Aman Va…; Rishi K…; +3 more

## Timeline

- **2025-02-20 — Default Date (…**: Kotak Mahindra Bank Limited claims the…
- **2024-12-10 — Default…**: The date on which the default occurred is 10.12.2024 as per Part IV to the Form 1 filed…

## 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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