Mumbai NCLT Rejects Israel Discount Bank's Insolvency Plea Against Hella Infra Market
The Mumbai bench of the National Company Law Tribunal (NCLT) has rejected a plea by Israel Discount Bank Limited seeking to initiate insolvency proceedings against Thane-based Hella Infra Market Limited. The tribunal held that the bank failed to establish the alleged liability as a "financial debt" under the Insolvency and Bankruptcy Code (IBC).
The bench, led by judicial member Nilesh Sharma and technical member Sameer Kakar, ruled on October 6, 2026, that the bank could not qualify as a financial creditor merely through transfer of rights under a promissory note and corporate guarantee. The tribunal noted the underlying transaction between Hella Singapore and P. Marom was a trade transaction, not a financing transaction.
Israel Discount Bank had claimed an outstanding amount of USD 7.80 million (approximately ₹69.20 crore), comprising USD 7.5 million in principal and USD 301,096.2 in accrued interest and default charges.
