The Mumbai NCLT has admitted Bank of Maharashtra’s insolvency plea against Tirumalla India Storehouse for defaulting on Rs 17.98 crore debt, highlighting the bank’s efforts to recover dues through insolvency proceedings.
The Mumbai bench of the National Company Law Tribunal has admitted Bank of Maharashtra’s application to start insolvency proceedings against Tirumalla India Storehouse Private Limited, after finding that the company had defaulted on dues of Rs 17.98 crore. The case was filed under Section 7 of the Insolvency and Bankruptcy Code, which allows a financial creditor to seek corporate insolvency resolution when repayment is not made.
According to the tribunal order quoted by Free Press Journal, Tirumalla India Storehouse had acted as corporate guarantor for credit facilities extended to Tirumalla Agro Industries Private Limited. The bank had sanctioned Rs 16 crore in borrowing, split between two term loans of Rs 6 crore and Rs 8 crore and a cash credit limit of Rs 2 crore under the Maha Krishi Samrudhi Yojana. The guarantor had also mortgaged an industrial plot and building in Beed, which were valued at Rs 8.18 crore in a July 2024 valuation report.
The bank said the principal borrower fell behind on both term-loan repayment and cash-credit obligations, prompting action under the SARFAESI Act. It later invoked the corporate guarantee on October 29, 2025, and, after the notice was returned undelivered, published it in newspapers on November 20, 2025. The tribunal noted that the company did not appear despite service by email, speed post, affixture and dasti service, and it proceeded ex parte after closing its right to file a reply.
The bench said the lender had produced enough documentary evidence to establish both debt and default, including a NeSL record of default. It also recorded that the principal borrower had already entered insolvency proceedings on October 9, 2025, and that Bank of Maharashtra had filed a claim of Rs 17.87 crore in that process. In line with other recent NCLT admissions, including the Bank of India case against Future Retail reported by Business Standard, the tribunal focused on whether a default existed rather than on wider commercial disputes.
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