National Company Law Tribunal Admits Insolvency Petition Against Cab-Eez Infra Tech Ltd.

Tata Power EV Charging Solutions Initiates Corporate Insolvency Resolution Process for Over Rs. 1.91 Crore Debt

In a significant ruling, the Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Tata Power EV Charging Solutions Limited against Cab-Eez Infra Tech Limited. The order, dated October 15, 2025, marks the initiation of the Corporate Insolvency Resolution Process (CIRP) against Cab-Eez Infra Tech Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).

Tata Power EV Charging Solutions, acting as the operational creditor, claimed an outstanding operational debt of Rs. 1.91 crore from Cab-Eez Infra Tech Ltd., the corporate debtor. The debt, arising from services provided under a Master Service Agreement (MSA) for electric vehicle charging services, includes principal dues, interest, and GST.

The tribunal's decision came after a thorough examination of the evidence presented, which included the MSA, invoices, and payment records. The adjudicating authority confirmed the existence of an operational debt and default, dismissing claims of pre-existing disputes raised by the corporate debtor as "illusory" and "unsupported by contemporaneous material."

Cab-Eez Infra Tech Ltd. had contested the insolvency application, citing alleged disputes over charges, billing, and regulatory compliance. However, the tribunal found these claims unsubstantial, noting the debtor's acknowledgments of liability and part payments as evidence negating any genuine pre-existing dispute.

The NCLT also issued a moratorium, prohibiting the institution or continuation of suits against Cab-Eez Infra Tech Ltd., the transfer or disposal of its assets, and the enforcement of security interests. The management of the corporate debtor will now vest in an Interim Resolution Professional (IRP), Mr. Manish Lalji Dawda, as appointed by the tribunal.

This ruling underscores the tribunal's stance that insolvency proceedings under the IBC are not to be used as a debt recovery tool but are meant for the resolution of genuine insolvency issues. It also highlights the importance of the operational creditor's responsibility to establish the operational debt and default clearly.

The tribunal has directed Tata Power EV Charging Solutions to deposit a sum of Rs. 3,00,000 with the IRP to cover the initial CIRP costs. This amount will be treated as interim finance and repaid upon availability of funds from the Committee of Creditors.

The case will now proceed under the supervision of the IRP, with periodic reports to be submitted to the NCLT regarding the progress of the CIRP. The tribunal's order also requires the Registrar of Companies, Maharashtra, Mumbai, to update the master data of Cab-Eez Infra Tech Ltd. to reflect the initiation of insolvency proceedings.

This development serves as a critical reminder for companies to maintain transparency and timely communication in financial dealings, particularly when engaged in long-term service agreements.

Bottom Line:

This development serves as a critical reminder for companies to maintain transparency and timely communication in financial dealings, particularly when engaged in long-term service agreements.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 - Sections 9, 14, 5(20), 5(21), 3(12); Limitation Act - Section 18

Tata Power EV Charging Solutions Limited v. Cab-Eez Infra Tech Limited, (NCLT)(Mumbai Bench-VI) : Law Finder Doc Id # 2796472