The court confirmed that a financial creditor's petition under Section 7 of the IBC can be admitted upon finding financial default and adherence to procedure, emphasizing the distinction between recovery actions and genuine insolvency resolutions.

ORDER

Delivered on: 13.03.2026

1. This Company Petition has been filed by Central Bank of India (“Financial Creditor”), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Narmada Extrusion Limited (“Corporate Debtor”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for having committed a default in payment of its financial debts amounting Rs. 95,31,92,434/- (Rupees Ninety-Five Crores Thirty-One Lakhs Ninety Two Thousand Four Hundred Thirty Four only) as on 14.11.2024.

2. Perusal of Part-I of the Form-1 indicates that the Financial Creditor is Central Bank of India. The Branch Office of the Financial Creditor is situated at Mid Corporate Branch, 160-161, PU4, 2nd Floor, Scheme No. 54, A.B., Indore – 452001(M.P.)., through its Assistant General Manager, Mr. Nishant Rajan being authorised by Letter of Authority dated 18.03.2025 which is annexed at ‘Annexure-1’.

3. On perusal of Part-II of the Form-1 reveals that the Corporate Debtor is Narmada Extrusion Limited having CIN No. U25202MP1984PLC002532, a private limited company incorporated on 14.08.1984 under the Companies Act, 1956. The Corporate Debtor is having registered office at Plot No.71 Industrial Area No.1 Pithampur, Dhar - 452 001 (Μ.Ρ.) and Branch Add: 403, Rajani Bhawan, Indore – 452001 (Μ.Ρ.) and e-mail ID: n.extrusions@gmail.com and with an authorized share capital of Rs. 4,00,00,000/- and paid-up share capital of Rs. 2,70,30,000/-, as per the Master Data available on the website of the Ministry of Corporate Affairs which is annexed with the Petition as ‘Annexure-3’.

4. On perusal of Part-III of the Form-1 revealed that, the Applicant/Financial Creditors has proposed the name of Mr. Kuldeep Tank having Registration No. IBBI/IPA-001/IP-P-02776/2022- 2023/14255 (AFA valid till 30.06.2026), having address: 14 Om Vihar, Indore Madhya Pradesh – 452005, e-mail: cakuldeeptank@gmail.com under section 13(1)(c) of the Code to act as Interim Resolution Professional (IRP). He has filed his written communication Form-2, which is annexed with the Petition as ‘Annexure-4’ as per the requirement of Rule 9(1) of the Insolvency and Bankruptcy (AAA) Rules, 2016.

5. On perusal of Part IV of Form-1, it is revealed that the total amount in default is claimed to be Rs. 95,31,92,434/-, including interest till 14.11.2024. The applicant has stated that there are several dates of default the first date of default is 30.11.2023 and the last date of default is 30.03.2024.

6. The Financial Creditor has placed the facts through this Petition along with supporting documents in the following manner: -

(i) It is stated that loan was granted on various dates under various heads as mentioned below:

(ii) It is respectfully submitted that, most recent enhancement in credit facilities extended to account of Corporate Debtor was done vide sanction letter no. MCB/CREDIT/2022-23/268 dated 22.09.2022, which is at ‘Annexure- 14’ at page 383 of the petition.

(iii) Despite repeated discussions and reminders by the Financial Creditor, the Corporate Debtor failed to regularise its account. The account had become overdrawn due to the devolvement of Letters of Credit (LC) and the Corporate Debtor did not clear the outstanding dues. Consequently, the account of the Corporate Debtor was classified as Non-Performing Asset (NPA) on 28.02.2024.

(iv) It is respectfully submitted that thereafter the Financial Creditor issued a notice dated 02.03.2024 under Section 13 (2) of the SARFAESI Act, 2002 . Subsequently, considering the long- standing business relationship, the Corporate Debtor requested the Financial