Bank of Maharashtra vs DNR India Autotech Private Limited – Key Takeaways from NCLT Mumbai Order under Section 7 IBC
1. Overview of the Case
The National Company Law Tribunal, Mumbai Bench, dealt with an application filed by Bank of Maharashtra as a Financial Creditor seeking initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s DNR India Autotech Private Limited, in its capacity as corporate guarantor.
The application, numbered C.P. (IB) No.1/MB/2026, was filed on 24.12.2025, alleging default in repayment of a financial debt of Rs. 17,98,68,464.00. The date of default mentioned in Part IV of Form-1 was 24.11.2025, corresponding to the invocation of the corporate guarantee.
The Bank of Maharashtra proposed Mr. Mangesh Vitthal Kekre (IBBI/IPA-001/IP-P00539/2017-18/10964) to act as the Interim Resolution Professional (IRP) in the event of admission of the application.
The Financial Creditor is a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its head office at Lokmangal, 150, Shivajinagar, Pune. The Corporate Debtor is a company incorporated under the Companies Act, 2013, with its registered office at Vashi, Navi Mumbai, Maharashtra.
2. Case Background and Financial Arrangement
2.1 Principal Borrower and Consortium Lending
Under the amended Form-1, Bank of Maharashtra clarified that the primary lending was made to M/s Tirumalla Agro Industries Private Limited, which acted as the principal borrower. Various credit facilities were extended under a consortium lending arrangement, and DNR India Autotech Private Limited stood as corporate guarantor for these facilities.
The principal borrower was sanctioned total credit limits aggregating to INR 16,00,00,000/-, broken up as under:
- Term Loan 1 under “Maha Krishi Samrudhi Yojna” – Rs. 6,00,00,000
- Term Loan 2 under “Maha Krishi Samrudhi Yojna” – Rs. 8,00,00,000
- Cash Credit under “Maha Krishi Samrudhi Yojna” – Rs. 2,00,00,000
The facilities were supported by a series of security documents and a corporate guarantee executed by the present Corporate Debtor.
2.2 Securities Provided by the Corporate Debtor
The Corporate Debtor created security in favour of the Financial Creditor by mortgaging several industrial properties. As per Part V of the amended application, the following immovable properties owned by M/s DNR India Autotech Private Limited had been mortgaged:
Plot No. L-18/11 – Land measuring 1250 sq. m and building of 843.21 sq. m at Waluj MIDC, Vitava Village, Aurangabad District.
- Market value: Rs. 482.22 Lakhs
- Valuer: M/s Resurgent Valuers
- Valuation date: 07.02.2022
Plot No. L-18/16 – Land measuring 1250 sq. m and building of 1296.72 sq. m at Waluj MIDC, Vitava Village, Aurangabad District.
- Market value: Rs. 479.77 Lakhs
- Valuer: M/s Resurgent Valuers
- Valuation date: 07.12.2022
Plot No. M-21 – Land measuring 800 sq. m and building of 396.81 sq. m at Waluj MIDC, Ranjangaon Village, Gangapur Taluk, Aurangabad District.
- Market value: Rs. 296.41 Lakhs
- Valuer: M/s Resurgent Valuers
- Valuation date: 07.12.2022
Plot No. M-55 – Land measuring 600 sq. m and building of 440.19 sq. m at Waluj MIDC, Ranjangaon Village, Gangapur Taluk, Aurangabad District.
- Market value: Rs. 262.94 Lakhs
- Valuer: M/s Resurgent Valuers
- Valuation date: 07.12.2022
These properties formed part of the security package supporting the facilities granted to the principal borrower.
3. Documents and Evidence Filed by the Financial Creditor
3.1 Additional Affidavits and Compliance
In response to directions issued through interim orders dated 19.01.2026 and 10.02.2026, the Financial Creditor submitted additional affidavits and an amended Form-1. The documents included:
- Affidavit explaining compliance with Tribunal’s directions along with the amended Form-1.
- Copy of paper publication dated 16.11.2025 relating to the principal borrower.
- Copy of CIRP admission order dated 09.10.2025 in C.P.(IB)/181/MB/2025 concerning Tirumalla Agro Industries Private Limited.
3.2 Transaction and Security Documents
To substantiate the existence of financial debt and default, the following documents were annexed: