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Judgment
Per Bench
This Company Petition is filed on 17.01.2026 by the Applicant – State Bank of India (hereinafter referred to as the Financial Creditor) against the Respondent – Miki Maize Milling Private Limited (hereinafter referred to as the Corporate Debtor) 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 for initiation of Corporate Insolvency Resolution Process on account of default in repayment of financial debt amounting to Rs. 25,25,21,888/- as on 31.12.2025 along with applicable interest.
On perusal of Part-I of Form-1, it is revealed that the Financial Creditor, State Bank of India, is a statutory bank constituted under the State Bank of India Act, 1955, having its corporate office at State Bank Bhavan, Madam Cama Marg, Nariman Point, Mumbai – 400021. The present Petition has been filed through its Stressed Assets Management Branch, Ahmedabad, 4th Floor, SBI Building, Lal Darwaza, Ahmedabad – 380001 through authorised officer namely Mr. Prakash Maurya, Assistant General Manager, who is duly authorised by a Letter of Authority annexed with the Petition as Annexure-S.
On perusal of Part-II of Form-1, it is revealed that the Corporate Debtor is Miki Maize Milling Private Limited, bearing CIN U15490GJ2007PTC052354, a private limited company incorporated on 14.12.2007 under the Companies Act, 1956. The Corporate Debtor has its registered office at 59, GIDC, Taluka Cambay, Kansari, Distt. Aanad, Gujarat – 388630, India. As per the Master Data available on the website of the Ministry of Corporate Affairs, the Corporate Debtor has an authorised share capital of Rs. 5,42,40,530/- and a paid-up share capital of Rs. 5,42,40,530/-, which is annexed with the Petition as Annexure-A.
On perusal of Part-III of Form-1, it is revealed that the Financial Creditor has proposed Mr. Sunit Jagdishchandra Shah, having Registration No. IBBI/IPA-001/IP-P00471/2017-2018/10814, having address at Ahmedabad and email address: [email protected] as mentioned in Form-2, to act as Interim Resolution Professional under Section 13(1)(c) of the Code. The proposed IRP has filed written communication in Form-2 dated 12.01.2026 along with Form-B being AFA dated 05.01.2026 and Certificate of Registration dated 01.08.2017, annexed as Annexure-O. The AFA of the proposed IRP is valid up to 30.06.2027.
The Applicant/Financial Creditor has placed the facts through this Company Petition in Part-IV & Part-V of Form-1 in the following manner: -
The Corporate Debtor availed multiple Credit Facilities in the shape of Cash Credit Limit, GECL and Term Loan Facilities of Rs.13.80 Crore from the Financial Creditor commencing from 03.11.2018, which were enhanced to Rs.22.54 Crore pursuant to sanction letters, letters of arrangement, loan agreements, hypothecation agreements, guarantees, and mortgage deeds, which are annexed collectively as Annexure-B to Annexure-F.
The said credit facilities were secured by hypothecation of movable assets, equitable and registered mortgage of immovable properties, and personal guarantees executed by the directors of the Corporate Debtor, supported by registered deeds and ROC charge registrations annexed as Annexure-M.
However, the Corporate Debtor failed to adhere to the repayment obligations and committed default on 25.07.2021 in repayment of the financial debt. The account of the Corporate Debtor was restructured on 01.09.2021. However, despite restructuring, the Corporate Debtor failed to adhere to the repayment obligations and committed default in repayment of the financial debt.
The Financial Creditor classified the account of the Corporate Debtor as Non-Performing Asset on 29.09.2023 with retrospective effect from 22.10.2021 due to continuous default.
A Demand Notice dated 07.10.2023 was issued by the Financial Creditor through advocate, followed by initiation of proceedings under the SARFAESI Act, 2002 by issuance of notice under Section 13(2) dated 08.04.2024 and thereafter on 29.06.2024 Section 13(4) of the SARFAESI Act, 2002, which are annexed as Annexure-G to Annexure-I.
The Corporate Debtor acknowledged the liability while handing over peaceful possession of secured assets during SARFAESI proceedings, which constitutes acknowledgment of debt.
The Financial Creditor has filed Record of Default with Information Utility, namely National E-Governance Services Limited, in the shape of Form-D reflecting default dated 25.07.2021, which status of authentication of default as Authenticated and is annexed as Annexure-Q.
The Financial Creditor has placed on record the statement of accounts, ledger extracts, and Bankers' Book Evidence Act certificates to establish the outstanding debt, annexed as Annexure-P and Annexure-R.
The Company Petition is filed within the period of limitation considering acknowledgment of debt, continuous cause of action, and authenticated record of default.
In view of the above facts, the Financial Creditor has sought admission of the Petition under Section 7 of the Code, initiation of CIRP against the Corporate Debtor, appointment of Interim Resolution Professional, and declaration of moratorium under Section 14 of the Code.
The Financial Creditor has relied upon the following documents: _
- (a) Company Master Data of the Corporate Debtor – Annexure-A - (b) Loan and sanction documents from 03.11.2018 onwards – Annexure-B (Colly.) - (c) Subsequent sanction and restructuring documents – Annexure-C to Annexure-F (Colly.) - (c) Demand notice dated 07.10.2023 – Annexure-G - (e) SARFAESI notices under Section 13(2) and 13(4) – Annexure-H and Annexure-I - (d) Record of Default issued by NESL – Annexure-Q - (g) Statement of Account and computation of debt – Annexure-P - (h) Bankers' Book Evidence Act certificates – Annexure-R - (i) Written communication and AFA of proposed IRP – Annexure-O - (j) Letter of Authority and Vakalatnama – Annexure-S and Annexure-T
That on issuance of the notice, a service report with affidavit was filed on 10.02.2026 vide Inward Diary No. D-1221. However, despite due service of notice on 29.01.2026 through electronic mode on Registered E-mail ID: [email protected] of the Corporate Debtor as well as on [email protected], [email protected], of the Directors and despite sufficient opportunity, the Corporate Debtor neither appeared nor filed any reply within stipulated period. Hence, right to file reply of the Corporate Debtor is closed and is proceeded Ex-Parte.
We have heard Ld. Counsel for the Financial Creditor, Ex-Parte against the Corporate Debtor, and considered the submissions and perused the material on record.
From the material placed on record, the existence of financial debt and occurrence of default stand established. As Financial Creditor had provided financial assistance of Rs.22.54 Crore to the Respondent/Corporate Debtor. However, the Respondent/Corporate Debtor committed default on 25.07.2021 in its repayment and accounts were classified as NPA on 29.09.2023. As on 31.12.2025, an outstanding amount of Rs. 25,25,21,888/- remained payable to the Applicant/Financial Creditor.
On perusal of Part-IV and Part-V of Form-1, it is evident that the Financial Creditor has quantified the amount in default and supported the same by Form-D generated from the Information Utility dated 18.11.2025 being record of debt and default issued by National E-Governance Services Limited (“NeSL”) in which date of default is recorded as 25.07.2021 with status with status “Authenticated” along with supporting documents. NeSL Certificates stand as concrete manifestations of default, providing a clear and indisputable record of the debtor's failure to meet its financial obligations. Accordingly, the Financial Creditor satisfies the requirement of the Section 7(3)(a) of the code.
Hon'ble NCLAT, in Milind Kashiram Jadhav v. State Bank of India and Anr., (2024) ibclaw.in 273 NCLAT has also upheld the evidentiary value of the Record of Default ("RoD") generated from the Information Utility in Form-D, for the purpose of establishing occurrence of default under Section 7 of the Code. The relevant extract of the said judgment is reproduced herein below: -
'73. Furthermore, the Bank has diligently presented evidence of default through NESL Certificates, submitting them before the National Company Law Tribunal (NCLT) along with comprehensive Written Arguments dated 09.03.2023. NESL Certificates stand as concrete manifestations of default, providing a clear and indisputable record of the debtor's failure to meet its financial obligations. Section 7(3)(a) states that "the Financial Creditor shall, along with the application furnish – (a) record of the default recorded with the information utility or such other record or evidence of default as may be specified; ..." and in this case record of default with the information utility was filed and is on record. In such a case there is no relevance of other documents as claimed by the Appellant and Admission cannot be disallowed on this ground."
(Emphasis Supplied)
This Tribunal has considered the legal framework under Section 7 of the IBC, which requires the establishment of a financial debt and a default by the Corporate Debtor. The Supreme Court in Innoventive Industries Limited Vs. ICICI Bank Limited & Anr. (2017) ibclaw.in 02 SC, clarified that the Adjudicating Authority must ascertain the existence of a debt that is due and a default that has occurred. The view taken in the case of Innoventive Industries has been followed by the Supreme Court in the case of E S Krishnamurthy & Ors. Vs. M/s Bharath Hi Tech Builders Pvt. Ltd. (2021) ibclaw.in 173 SC.
Supreme Court in M. Suresh Kumar Reddy Vs. Canara Bank & Ors. (2023) ibclaw.in 67 SC held that the decision in the case of Vidarbha Industries (2022) ibclaw.in 91 SC cannot be read and understood as taking a view which is contrary to the view taken in the cases of Innoventive Industries [2017] ibclaw.in 02 SC and E.S. Krishnamurthy (2021) ibclaw.in 173 SC. The view taken in the case of Innoventive Industries still holds good. The Hon'ble Supreme Court observed that:
> “13. Thus, it was clarified by the order in review that the decision in the case of Vidarbha Industries was in the setting of facts of the case before this Court. Hence, the decision in the case of Vidarbha Industries cannot be read and understood as taking a view which is contrary to the view taken in the cases of Innoventive Industries and E.S. Krishnamurthy. The view taken in the case of Innoventive Industries still holds good.”
Thus, the present Petition is complete in terms of Section 7 (5) of the Code. The Tribunal finds that the Financial Creditor has discharged its burden of proof under Section 7 of the Code by demonstrating the existence of a financial debt and default in payment of the financial debt by the Corporate Debtor. The outstanding financial debt is of more than rupees one crore, which meets the threshold limit as per section 4 of the Code and is well within the limitation for filing the present Petition, which is supported by comprehensive documentation. Moreover, the said default is not covered under the period exempted under Section 10A of the IBC, 2016.
In light of the above findings, this Tribunal is satisfied that the Financial Creditor is entitled to the relief as sought. The Corporate Debtor's default, coupled with its non-appearance despite due service, justifies the admission of the petition and the initiation of CIRP under the Code. Hence, the Application filed under section 7(2) of the Insolvency and Bankruptcy Code for initiation of corporate insolvency resolution process (CIRP) against the Respondent/Corporate Debtor deserves to be admitted.
Accordingly, in light of the above facts and circumstances, it is, hereby ordered as under:-
The Respondent/Corporate Debtor - Miki Maize Milling Private Limited is admitted in the Corporate Insolvency Resolution Process (CIRP) under section 7 of the IBC, 2016.
As a consequence thereof, a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 is declared for prohibiting all of the following in terms of Section 14(1) of the Code.
a. The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;
b. Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;
c. Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
d. The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.
e. The provisions of sub-Section (1) shall however, not apply to such transactions, agreements as may be notified by the Central Government in consultation with any financial sector regulator and to a surety in a contract of guarantee to a Corporate Debtor. The moratorium does not apply to transactions notified by the Central Government, as per Section 14(3)(a) of the IB Code, 2016.
The order of moratorium under section 14 of the Code shall come to effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of section 31 or passes an order for liquidation of the Corporate Debtor under Section 33 of the IBC 2016, as the case may be.
However, in terms of Section 14(2) to 14(3) of the Code, the supply of essential goods or services to the Corporate Debtor as may be specified, if continuing, shall not be terminated or suspended, or interrupted during the moratorium period.
As proposed by the Financial Creditor, we appoint Mr. Sunit Jagdishchandra Shah, having Registration No. IBBI/IPA- 001/IP-P00471/2017-2018/10814, having address at Ahmedabad and E-mail address: [email protected], Mobile No. 98255-62442 under section 13 (1)(c) of the Code to act as Interim Resolution Professional (IRP). He shall conduct the Corporate Insolvency Process as per the Insolvency and Bankruptcy Code, 2016 r.w. Regulations made thereunder.
The IRP so appointed shall make a public announcement (e.g., newspapers, websites) under Regulation 6(2) of IBBI Regulations, 2016, of the initiation of the Corporate Insolvency Resolution Process and call for submissions of claims under section 15 within three days of appointment as per Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as required by Section 13(1)(b) of the Code.
The IRP shall perform all his functions as contemplated, inter-alia, by sections 17, 18, 20 and 21 of the Code. It is further made clear that all personnel connected with the Corporate Debtor, its promoters, or any other person associated with the management of the Corporate Debtor are under legal obligation as per section 19 of the Code to extend every assistance and cooperation to the IRP. Where any personnel of the Corporate Debtor, its promoters, or any other person required to assist or co-operate with IRP, do not assist or cooperate, the IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.
The IRP is expected to take full charge of the Corporate Debtor's assets and documents without any delay whatsoever within seven days of this order. The IRP may seek assistance of the jurisdictional police authorities, if required in this regard, and this Tribunal hereby directs the Police Authorities to render all assistance as may be required by the IRP in this regard.
The IRP shall be under a duty to protect and preserve the value of the property of the 'Corporate Debtor company' and manage the operations of the Corporate Debtor company as a going concern as a part of the obligation imposed by section 20 of the Code.
The IRP or the RP, as the case may be, shall submit to this Adjudicating Authority a periodical report with regard to the progress of the CIRP in respect of the Corporate Debtor.
We direct the Financial Creditor to pay IRP a sum of Rs.5,00,000/- (Rupees Five Lakh Only) in advance exclusive of applicable taxes, within 7 days from the date of this order to meet the initial costs of the CIRP, including issuing public notice and inviting claims, as per Regulation 33(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This amount shall be adjustable against the IRP's fees and expenses as approved by the Committee of Creditors (CoC) under Regulation 33(3), with any excess refundable to the Financial Creditor or shortfall recoverable from the Corporate Debtor's estate as CIRP costs.
The Registry is directed to communicate this order to the Financial Creditor, Corporate Debtor, and to the Interim Resolution Professional, the concerned Registrar of Companies and the Insolvency and Bankruptcy Board of India after completion of necessary formalities, within seven working days, and upload the same on the website immediately after pronouncement of the order. The Registrar of Companies shall update the Corporate Debtor's Master Data on the MCA portal to reflect its status as 'under Corporate Insolvency Resolution Process' within 7 working days of receiving this order and submit a compliance report to the Registrar, NCLT, within 14 working days.
The public announcement under Regulation 6(2) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, shall be published in at least one English (national edition) and one vernacular newspaper with wide circulation in the state of the Corporate Debtor's registered office (Gujarat) and on the Corporate Debtor's website, if any, as per Form A of the said Regulations.
The commencement of the Corporate Insolvency Resolution Process shall be effective from the date of this order.
Accordingly, this Application CP(IB)/27/7/AHM/2026 is hereby admitted. Order is dictated and pronounced in open court. A certified copy of this order may be issued, if applied for, upon compliance with all requisite formalities.