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Informist, Wednesday, Jan. 22, 2025

 

NEW DELHI – The Delhi bench of the National Company Law Tribunal has admitted a petition by Punjab National Bank (International) Ltd. to start insolvency proceedings against MBL (MP) Toll Road Co. Ltd., a subsidiary of MBL Infrastructure Ltd., for an unpaid amount of INR 440 million. The tribunal appointed Piyush Moona as the interim resolution professional to carry out functions as per the Insolvency and Bankruptcy Code, 2016.

 

There is a clear case of debt and default, the tribunal said, declaring a moratorium against MBL (MP) Toll Road Co. 

 

MBL Infrastructure had set up MBL (MP) Toll Road Co. as a special-purpose vehicle for developing the Waraseoni-Lalbarra section of a district road in Madhya Pradesh. 

 

Punjab National Bank (International), a wholly-owned subsidiary of Punjab National Bank, had given a loan to MBL (MP) Toll Road Co. for the project in 2012. After the initial payment, MBL (MP) Toll Road Co. could not fulfil its payment obligation and the account was classified as a non-performing asset in 2023. 

 

On Wednesday, the shares of MBL Infrastructure ended 4.6% lower at INR 59.33 on the National Stock Exchange, while the shares of Punjab National Bank ended 2.1% lower at INR 98.20.

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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