Bank of Maharashtra vs M/s. SPD Cold Storage LLP

This Tribunal under Rule 154 of the National Company Law Tribunal Rules, 2016 takes suo moto cognizance to rectify the error in the Final Order dated 09.09.2025 passed under Section 7 of the Insolvency and Bankruptcy Code, 2016 in the above-captioned Petition wherein we observed that:

We notice that the aforesaid errors are clerical in nature and the same are rectified as under:

Accordingly, the Final Order dated 09.09.2025 in the above-captioned Petition stand rectified on the above terms. This Corrigendum dated 10.09.2025 forms part and parcel of Final Order dated 09.09.2025.

The case is fixed for pronouncement of the order. The order is pronounced in the open court, vide separate order. Detailed order is being uploaded on the NCLT portal today.

[PER: BENCH]

This is an Application bearing C.P. (IB) No.371/MB/2025 filed on 04.03.2025 by Bank of Maharashtra, the Applicant (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "the Code") read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as "the AAA Rules") through Mr. Jagannath Prasad Pattanaik, Chief Manager and Branch Manager of the Applicant vide Board Resolution dated 22.03.2022 for initiating Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP") in respect of M/s. SPD Cold Storage LLP, the Corporate Debtor (CD).

The Applicant is a body corporate constituted under The Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. The CD is a Limited Liability Partnership incorporated under the Limited Liability Partnership Act, 2008. The CD is engaged in the business of cold storage facilities and related activities.

The Applicant has relied on the following documents:

As per Part-IV of the Application the total amount claimed to be in default by the Applicant is Rs. 37,63,63,399.32/- (Thirty-Seven Crore Sixty-Three Lakh Sixty-Three Thousand Three Hundred and Ninety-Nine Rupees and Thirty-Two Paisa) inclusive of interest as on 28.01.2025.

The date of default mentioned in Part-IV is 28.09.2023 i.e. date of NPA.

The CD was granted various facilities vide Sanction Letter No. ZLCC-ZM/CPC-104/2019-20 dated 31.12.2019 and Amendment in Sanction letter dated 31.12.2019 vide letter No. No AX6/CPC/Sanction/Bhavani Peth/SPD/2019-20 dated 07.02.2020, is for following limits:

Sanction Letter No. ARI/GECL/SPDCOLD STROAGRE /2020-21/7 dated 18.06.2020 is for following limits: -

Sanction Letter dated 07.12.2021 is for following limits: -

The Applicant submitted that CD executed various security/loan documents in favour of the Applicant for the facilities availed by the CD.

It is submitted that the CD defaulted in payment of loan and the account was classified as Non-Performing Asset (NPA) on 28.09.2023.

The Applicant initiated action under the SARFAESI Act, 2002 and also filed an Original Application No. 165 of 2024 before the Hon'ble DRT, Pune which is pending adjudication.

This Tribunal vide Interim Order dated 09.07.2025 directed the Applicant to rectify the defects and amend Form 1. The order records as follows:

The Applicant complied with the above order and filed an Additional Affidavit dated 09.07.2025 removing the defect, amending the date of default in Form 1 and placed on record notice under Section 13(2) of SARFAESI Act.

The amended Form 1 records the date of default, in Part-IV of the Application as 30.06.2023.

The Applicant was directed to issue notice to the CD vide interim order dated 08.04.2025. The Applicant attempted to serve on the CD on 15.05.2025 which was returned/undelivered on 17.05.2025. The Applicant again serviced the notice on 23.05.2025 to the CD but no tracking report was attached to the Affidavit of Service dated 26.05.2025. It also stated that an email was sent to the CD on 23.05.2025 but not MCA record was attached to verify the email of the CD. The Dasti mode of service was also attempted by the Applicant on 23.05.2025. The Applicant was directed to file a better Affidavit of Service along with proof of service vide order dated 26.05.2025.

The Applicant filed another Affidavit of Service dated 09.06.2025. The interim order dated 11.06.2025 records the service upon the CD to be completed, as follows:

The Applicant submits that in terms of order dated 11.06.2025, they have served the copy of the order dated 11.06.2025 through speed post to the CD on 19.06.2025 and filed Affidavit of Service dated 19.06.2025. The same is recorded in the interim order dated 20.06.2025.

The Tribunal’s interim order dated 20.06.2025 records as below,

The matter was listed on 11.06.2025, 20.06.2025, 09.07.2025 and 25.07.2025. It was stated that no one appeared on behalf of the CD on these dates and no Vakalatnama and Reply was filed on DMS. This Tribunal vide order dated 11.06.2025 closed the right to reply of the CD due to continuous absence and subsequently vide order dated 20.06.2025, set the CD ex-parte. No IA was filed on DMS seeking recall of the order dated 20.06.2025.

We have heard the Counsel for the Applicant and have perused the records as placed before us. Our findings in the matter are as under: -

The Applicant has placed on record Sanction Letters dated 31.12.2019, 07.02.2020 (amended Sanction Letter), 18.06.2020 and 07.12.2021. From perusal of these letters it is seen that the Applicant had sanctioned the Cash Credit Facility of Rs. 25 Crores. Subsequently, an amendment to the terms of the original sanction was effected vide communication dated 07.02.2020. Working Capital Term Loan (ECLGS) for an amount of Rs. 3.12 Crores and Working Capital Term Loan (ECLGS) for Rs. 4.36 Crores were sanctioned as requested by the CD. The above facilities have been acknowledged by the CD through “Application/Letter of making credit facility available” dated 10.02.2020, 02.07.2020 and 27.12.2021 issued by the CD to the Applicant.

On perusal of the Statement of Accounts placed on record it is observed that the Applicant has maintained the accounts of the CD for WCTL GECL bearing A/c No. 60358138638, for WCTL II GECL bearing A/c No. 60403539196 and for Cash Credit Facility bearing A/c No. 60352465152. The amount of Rs. 25 Crore (Cash Credit) was disbursed on 15.02.2020, Rs. 3.12 Crores was disbursed on 04.07.2020 and Rs. 4.36 Crores on 29.12.2021, which can be seen from Pg. Nos. 31, 37 and 41 of the Application. The Certificate under Section 2A of the Banker’s Book of Evidence Act, 1891 confirms the above accounts are maintained by the Applicant. From perusal of these documents, we are of the view that there arose a financial relation between the parties and there were disbursals made by the Applicant to the CD.

A Simple Mortgage Deed dated 09.01.2020 was executed between the Applicant and the CD. This deed was in line with the cash credit facility borrowed by the CD. The Repayment of this credit facility as per First Schedule of the Mortgage Deed dated 09.01.2020 was "On Demand" by the Applicant. In case of Working Capital Term Loan (ECLGS) for an amount of Rs. 3.12 Crores, a Term Loan Agreement dated 02.07.2020, a Deed of Hypothecation dated 02.07.2020 and a Deed of Guarantee providing a personal guarantee in respect of all credit facilities except agriculture lending in favour of the Applicant dated 02.07.2020 were executed in favour of the Applicant. For Working Capital Term Loan (ECLGS) of Rs. 4.36 Crores a Term Loan Agreement dated 27.12.2021, Deed of Hypothecation dated 27.12.2021 and Deed of Guarantee dated 27.12.2021 were executed in favour of the Applicant.

On perusal of the Simple Mortgage Deed dated 09.01.2020, it is seen that Clause 1 provides for repayment of the cash credit facility borrowed by the CD. The Clause 1 along with the interest Clause 2 are as below:

It is also to be noted that the Term Loan Agreement dated 02.07.2020 and 27.12.2021 are having the repayment terms as per the Schedule in the Agreement. Therefore, it is clear from the above clauses that the CD had to pay interest every month till the entire credit limit and interest is repaid by the CD. It is seen from the Statement of Accounts bearing A/c No. 60352465152, that the last payment made by the CD was of Rs. 75,000/- on 04.11.2023, in A/c No. 60358138638 was of Rs.3 Lakh on 14.09.2023 and in A/c No. 60403539196 was for Rs.1 Lakh (approx) on 14.09.2023, though the accounts were irregular and in default w.e.f. 30.06.2023. Thereafter, no payment was made by the CD.

Further, to determine the default committed by the CD we refer to the terms of event of default as per the Simple Mortgage Deed and Term Loan Agreements, which are as under:

(i). Clause 10 of the Simple Mortgage Deed dated 09.01.2020:

(ii). Clauses 1 & 2 of the Term Loan Agreements dated 02.07.2020 and 27.12.2021:

In terms of the above said agreements the CD had to make payment of the principal amount and interest amount as and when it becomes due. The CD has made last payment on 04.11.2023 under Cash Credit Facility but has not made regular payments as per the agreed terms from the month of June to September. Pursuant thereto, the Applicant classified CD's account as NPA on 28.09.2023. Thereafter, the Applicant issued a notice under Section 13(2) of the SARFAESI Act, 2002 dated 04.10.2023 calling upon the CD to repay in full the amount of Rs. 31,65,67,401.70/- including interest at the rate of 10.85 % p.a. and 9.25% p.a. as unapplied interest and 2% p.a. as penal interest.

On perusal of the RBI guidelines for declaring an account as NPA, we rely on the following clauses:

Therefore, placing reliance on the above clauses we are of the view that the CD was defaulting in regular payments in cash credit facility and therefore, in consideration of the above Clause in 2.2.2 (i), all the facilities granted by the Applicant will have to be treated as NPA.

The date of default was amended by the Applicant in Form 1 as 30.06.2023 which is the date from which the CD started incurring default in payment of instalments and/or in interest. Even the outstanding in the CC account exceeded the sanctioned limits with effect from 30.06.2023 onwards. Subsequently, vide Notice u/s 13(2) of SARFAESI Act, 2002, dated 04.10.2023 all the facilities were recalled and as a result the entire facilities became due for payment. The date of default was amended in Form 1 vide Additional Affidavit dated 09.07.2025. The NeSL record also states the date of default as 30.06.2023.

The NeSL records of default under Form D record the Status of Authentication of default as 'Authenticated' and the total outstanding amount as Rs.29,16,44,384.50/-, Rs.1,20,14,772.45/- and Rs. 4,85,00,070.76/- with respect to different facilities.

The Applicant has proposed the name of Mr. Prakash Jain to act as the Interim Resolution Professional (IRP) and has given his declaration in Form 2, inter alia, stating that no disciplinary proceeding is pending against him. On perusal of the IBBI website, it is seen that the Applicant has AFA which is valid till 31.12.2025.

Thus, it is clear from perusal of the record that an amount of more than the threshold limit of Rs.1 Crore under Section 4 of the Code is due and payable by the CD to the Applicant. Hence, we find that the Applicant has been able to substantiate the existence of a financial debt due and payable by the CD which remained unpaid. The debt so owed by the CD to the Applicant falls within the definition of "financial debt" under Section 5(8) of the Code. 4.15 It is also seen that the Application filed by the Applicant on 04.03.2025, is under limitation which is within the period of three years from the date of default. 4.16 Further, we rely upon the Hon'ble Supreme Court's judgment in M/s. Innoventive Industries Ltd. v. ICICI Bank & Anr. (Judgment dated August 31, 2017 in Civil Appeal Nos. 8337-8338 of 2017) wherein it has been held as follows:

Considering the above judgment, facts and findings, we are of the considered view that the Applicant has placed on record necessary evidences and materials to demonstrate the existence of the financial debt and therefore, the Application/Petition filed is complete. 4.18 In view of the above, we find that requisite conditions necessary to trigger CIRP in respect of the CD are fulfilled and the matter deserves to be admitted under Section 7 of the Code. 4.19 We make it clear that at this stage we have not crystallized the amount as claimed in this Application, and the same is left to be collated by the IRP.

In view of the aforesaid findings, Application bearing C.P.(IB) No.371/MB/2025 filed under Section 7 of the Code by Bank of Maharashtra, the Applicant, for initiating CIRP in respect of M/s. SPD Cold Storage LLP, the Corporate Debtor is hereby admitted.

We further declare moratorium under Section 14 of the Code with consequential directions as mentioned below: -

I. We prohibit-

II. That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period.

III. That the order of moratorium shall have effect from the date of this order till the completion of the CIRP or until this Tribunal approves the resolution plan under Section 31(1) of the Code or passes an order for the liquidation of the Corporate Debtor under Section 33 thereof, as the case may be.

IV. That the public announcement of the CIRP shall be made in immediately as specified under Section 13 of the Code read with Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and other Rules and Regulations made thereunder.

V. That this Bench hereby appoints Mr. Prakash Jain, a registered Insolvency Professional having Registration Number IBBI/IPA-001/IP-P01368/2018-2019/12131 and e-mail address [email protected] having valid Authorisation for Assignment up to 31.12.2025 as the IRP to carry out the functions under the Code.

VI. That the fee payable to IRP/RP shall be in accordance with such Regulations/Circulars/ Directions as may be issued by the IBBI.

VII. That during the CIRP Period, the management of the Corporate Debtor shall vest in the IRP or, as the case may be, the RP in terms of Section 17 or Section 25, as the case may be, of the Code. The officers and managers of the Corporate Debtor the Corporate Debtor is directed to provide effective assistance to the IRP as and when he takes charge of the assets and management of the Corporate Debtor. Coercive steps will follow against them under the provisions of the Code read with Rule 11 of the NCLT Rules for any violation of law.

VIII. That the IRP/IP shall submit to this Tribunal periodical reports with regard to the progress of the CIRP in respect of the Corporate Debtor.

IX. In exercise of the powers under Rule 11 of the NCLT Rules, 2016, the Applicant is directed to deposit a sum of Rs.3,00,000/- (Rupees Three Lakh) with the IRP to meet the initial CIRP cost arising out of issuing public notice and inviting claims, etc. The amount so deposited shall be interim finance and paid back to the Applicant on priority upon the funds available with IRP/RP from the Committee of Creditors (CoC). The expenses incurred by IRP out of this fund are subject to approval by the CoC.

X. A copy of this Order be sent to the Registrar of Companies, Maharashtra, Mumbai for updating the Master Data of the Corporate Debtor.

XI. A copy of the Order shall also be forwarded to the IBBI for record and dissemination on their website.

XII. The Registry is directed to immediately communicate this Order to the Applicant, the Corporate Debtor and the IRP by way of Speed Post, e-mail and WhatsApp.

XIII. Compliance report of the order by Designated Registrar is to be submitted today.