2 weeks ago
NCLT Admits Bank of Maharashtra Insolvency Plea Against Tirumalla Storehouse
A bank called the Bank of Maharashtra gave money to a company called Tirumalla Agro Industries, which processes farm products.
The company promised to pay the money back.
Another company, Tirumalla India Storehouse, promised the bank that it would pay if the first company did not — this promise is called a corporate guarantee.
Tirumalla Agro did not repay the loans, and Tirumalla India Storehouse did not pay either.
The bank asked a special court, the National Company Law Tribunal, to help get its money back.
The court agreed and started a special process called insolvency, where the company's money and property are managed to try to repay what is owed.
The storehouse company did not come to court, so the judges used the bank's papers to make their decision.
The company also gave the bank a building and land in Beed as extra security.
The amount owed is about 18 crore rupees, which is a very large sum of money.
The Mumbai Bench of the National Company Law Tribunal (NCLT) admitted Bank of Maharashtra's application under Section 7 of the IBC to initiate Corporate Insolvency Resolution Process against Tirumalla India Storehouse Private Limited.
The corporate guarantor's default amounts to Rs 17,98,68,464 (about Rs 17.98 crore), exceeding the Rs 1-crore threshold under Section 4 of the IBC.
Tirumalla India Storehouse guaranteed Rs 16 crore in credit facilities — two term loans of Rs 6 crore and Rs 8 crore plus a Rs 2 crore cash credit under Maha Krishi Samrudhi Yojana — availed by Tirumalla Agro Industries Private Limited.
The corporate debtor failed to appear or file a reply despite service through email, speed post, affixture and dasti service, so the tribunal set it ex parte and relied on bank records including the NeSL record of default.
The principal borrower was already admitted into CIRP on October 9, 2025, and the bank's admitted claim of Rs 17.87 crore in that process remained unpaid.
- Who
- Bank of Maharashtra (applicant), Tirumalla India Storehouse Private Limited (corporate guarantor/corporate debtor), Tirumalla Agro Industries Private Limited (principal borrower), and the Mumbai Bench of the National Company Law Tribunal.
- What
- The NCLT admitted the bank's plea to start Corporate Insolvency Resolution Process against the corporate guarantor over a default of Rs 17.98 crore.
- Where
- The Mumbai Bench of the National Company Law Tribunal; the mortgaged industrial property is located in Beed.
- When
- The revised date of default is November 28, 2025; the guarantee was invoked on October 29, 2025, and the principal borrower was admitted into CIRP on October 9, 2025.
- Why
- The corporate guarantor defaulted on the outstanding dues after the principal borrower failed to repay Rs 16 crore in credit facilities, prompting the bank to invoke the corporate guarantee.
Key facts
- Tribunal
- Mumbai Bench, National Company Law Tribunal (NCLT)
- Legal Provision
- Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016
- Default Amount
- Rs 17,98,68,464 (about Rs 17.98 crore)
- Guaranteed Credit Facilities
- Rs 16 crore (term loans of Rs 6 crore and Rs 8 crore; cash credit of Rs 2 crore) under Maha Krishi Samrudhi Yojana
- Guarantee Agreement Date
- January 9, 2023
- Mortgaged Property
- Industrial plot and building in Beed — 38,659.50 sq ft and 3,415.69 sq m — valued at Rs 8.18 crore (valuation dated July 23, 2024)
- Revised Date of Default
- November 28, 2025
- Principal Borrower's CIRP Admission
- October 9, 2025; bank's admitted claim of Rs 17.87 crore remained unpaid
Sources
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