Authority: National Company Law Tribunal Mumbai Bench-II

Order Date: 17.06.2026

Case Overview

The National Company Law Tribunal (NCLT) Mumbai Bench-II heard a petition filed by Central Bank of India (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Deepak Education Limited (Corporate Debtor). The application was filed on 07.10.2023 seeking initiation of Corporate Insolvency Resolution Process (CIRP) for a default amount of ₹44,68,93,218/- (Rupees Forty Four Crore Sixty Eight Lakhs Ninety Three Thousand Two Hundred and Eighteen only), comprising principal debt of ₹13,61,00,000/-, accrued interest of ₹32,67,90,309/-, and penal interest of ₹1,77,02,909/-, less recovery of ₹3,37,00,000/- up to 30.06.2023.

The financial creditor had sanctioned a term property loan of ₹15,00,00,000/- to the corporate debtor vide sanction letter dated 20.05.2013. The corporate debtor defaulted in repayment obligations on 31.03.2015, with some installment payments continuing until 20.01.2016 before ceasing completely. The account was declared NPA, and legal notices were issued on 22.03.2017. The corporate debtor proposed a One Time Settlement of ₹5,00,00,000/- on 25.01.2023, which the financial creditor requested to be increased.

The sole legal issue was limitation, as the default date (31.03.2015) preceded the application filing date (07.10.2023). The tribunal found that the corporate debtor's audited financial statements from FY 2013-14 to FY 2021-22 disclosed the term loan obligation, constituting acknowledgment of debt under law. The 2023 OTS proposal was also considered as debt acknowledgment, overcoming the limitation challenge.

The corporate debtor was served notices but remained unrepresented in proceedings, leading to an ex-parte order dated 28.06.2024. The financial creditor proposed Mr. Anil Kashi Drolia (Registration Number: IBBI/IPA-001/IP-P02327/2020-2021/13482) as Interim Resolution Professional, who provided written consent and certification of no pending disciplinary proceedings.

Final Outcome

The NCLT admitted the application (CP (IB) No. 374/MB/2024) and declared moratorium under Section 14 of the IBC, prohibiting: institution or continuation of suits against the corporate debtor; transfer or disposal of assets; foreclosure or enforcement of security interest; and recovery of property by owners/lessors. The moratorium takes effect immediately and continues until CIRP completion, resolution plan approval, or liquidation order.

Mr. Anil Kashi Drolia was appointed as IRP with email address anildrolia.ip@gmail.com and authorization valid until 30.06.2027. The financial creditor was directed to deposit ₹3,00,000/- with the IRP for initial CIRP costs, which will be treated as interim finance. The corporate debtor's management vests with the IRP/RP, and officers are directed to provide all documents and information within one week. The order was communicated to Registrar of Companies, Mumbai, and IBBI for records.

Topics: Corporate Insolvency, Banking Debt Recovery