MBL Infrastructure Ltd on Wednesday informed the stock exchanges that the National Company Law Tribunal (NCLT), Kolkata Bench, has initiated Corporate Insolvency Resolution Process (CIRP) against its wholly owned subsidiary, Suratgarh Bikaner Toll Road Company Private Ltd (SBTRCPL).
This order was dated December 1, 2025 and received by the company on December 2, 2025.
According to the filing, the insolvency proceedings were triggered by an application filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 by State Bank of India (SBI), one of the lenders to the DBFOT highway project.
Why the subsidiary was sent to CIRP
SBTRCPL was implementing a highway project under a concession agreement dated May 9, 2012, financed through a project-centric facility of ₹450 crore from a consortium of five banks, including SBI.
The filing highlights the following points:
- The project faced delays in completion/COD.
- The concessioning authority granted an extension till June 8, 2023, acknowledging that the delay was not attributable to SBTRCPL.
- Loan repayment was contractually linked to the project’s completion, and lenders had earlier provided undertakings not to enforce recovery until COD.
- A dispute arose between SBTRCPL and the bank consortium regarding alleged excess recoveries under the escrow mechanism.
- SBTRCPL has already invoked arbitration as per the dispute resolution clause of the Escrow Agreement dated April 10, 2013.
No penalty imposed
The company clarified that no fine or penalty has been imposed on the subsidiary by the adjudicating authority.
Company response
MBL Infrastructure added that it will evaluate the financial impact of the CIRP order on the consolidated books and make further disclosures as required under SEBI (LODR) norms.
The exchange filing has been made in compliance with Regulation 30 of SEBI LODR Regulations, 2015.
