NCLT Mumbai Admits Insolvency Plea Against Borivali Healthcare Over ₹10.91 Crore Bank Of India Default

Mumbai: The National Company Law Tribunal (NCLT), Mumbai, has admitted a corporate insolvency resolution process (CIRP) against Borivali Healthcare Pvt. Ltd. on a petition filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.

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Rs 10.91 Crore Default

The financial creditor, the bank, approached the tribunal seeking initiation of insolvency proceedings over an alleged default of Rs 10.91 crore as on September 4, 2025, along with further interest, penal charges and costs. The bank stated that it had sanctioned aggregate credit facilities of Rs 10.45 crore to the healthcare company, including three term loans and an overdraft facility.

According to the petition, the initial credit facilities were sanctioned in March 2022 and were later revised in July 2023. The loans were secured by a registered mortgage of units at Lancelot CHS, SV Road, Borivali (West), Mumbai, along with hypothecation of medical equipment and machinery. Personal guarantees were also executed by the company’s directors.

Failed Repayments

“The Corporate Debtor failed to honor the repayment commitment due to its failure to generate sufficient cash flows. The Financial Creditor consistently followed up with the Corporate Debtor to regularize the accounts through personal contacts and letters. Despite regular follow-up from the Financial Creditor, the Corporate Debtor did not take any steps to regularize the accounts,” the order copy states.

“It is stated that due to non-payment of interest and instalments for various facilities from February 2024 onwards, the account was classified as NPA with effect from May 29, 2024, in accordance with the guidelines of the Reserve Bank of India.”

Post-NPA Recovery of Rs 46 Lakh

Despite recovery efforts and a post-NPA recovery of Rs 46.04 lakh, the outstanding dues remained unpaid. The date of default was stated as February 29, 2024, in the application filed before the tribunal.

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In its reply affidavit dated February 11, 2026, Borivali Healthcare Pvt. Ltd. did not dispute the existence of debt or default. The company admitted that it was not in a financial position to clear the outstanding dues of the applicant or other creditors and declared itself insolvent. It further stated that the petition deserved to be admitted in accordance with the provisions of the IBC.

After examining the documents and hearing both sides, the tribunal held that the financial creditor had established the existence of a financial debt and default exceeding Rs 1 crore within the period of limitation.

The bench appointed insolvency professional Manmohan Jhawar as the Interim Resolution Professional (IRP) and directed him to make a public announcement inviting claims from creditors and to take control of the company’s assets and records.

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