Authority: National Company Law Tribunal, Amaravati Bench

Order Date: 16 June 2026

Case Overview

The National Company Law Tribunal (NCLT) Amaravati Bench heard a petition filed by Canara Bank (erstwhile Syndicate Bank) under Section 7 of the Insolvency and Bankruptcy Code, 2016 against KGOC Terminals Private Limited. The Financial Creditor (Canara Bank) sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (KGOC Terminals) for default in payment of dues amounting to Rs. 64,69,67,514.47 as on 01 December 2020.

The debt originated from a term loan facility of Rs. 44.21 crores sanctioned on 27 July 2017 for setting up 23 bulk liquid terminals for storage of petroleum and petrochemical products. The loan was secured by mortgage of immovable properties and hypothecation of plant and machinery. The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 01 December 2020 according to RBI guidelines.

The Corporate Debtor contested the petition on two main grounds: (1) that the default date of 01 December 2020 fell within the COVID-19 suspension period protected under Section 10A of IBC (25 March 2020 to 25 March 2021), and (2) denial of the financial debt amount. The proceedings saw multiple hearings, including a withdrawn petition after an OTS settlement that subsequently failed, followed by a restoration application.

Final Outcome

The NCLT admitted the petition and initiated CIRP against KGOC Terminals Private Limited. The tribunal rejected the Corporate Debtor's Section 10A defense, establishing that the actual default commenced on 15 February 2020 (pre-COVID period) when the Corporate Debtor failed to pay the first installment of Rs. 1,23,00,000 along with interest. The bench appointed Mr. Dommeti Surya Rama Krishna Saibaba (Registration No. IBBI/IPA-003/IP-N000165/2018-2019/12106) as the Interim Resolution Professional and directed Canara Bank to deposit Rs. 5,00,000 with the IRP to meet initial CIRP expenses. A moratorium was declared under Section 14 of the IBC.

Topics: Corporate Insolvency, Debt Default, NCLT Proceedings