NCLT Admits CIRP of HK Toll Road Private Limited by Canara Bank; Moratorium Declared
The National Company Law Tribunal (NCLT) has admitted the Corporate Insolvency Resolution Process (CIRP) against HK Toll Road Private Limited, a subsidiary of Reliance Infrastructure Limited. The process was initiated by Canara Bank Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT also declared a moratorium over the corporate debtor.The company in distress is engaged in a highway project located on NH-7 in Tamil Nadu, which has been operational since April 2016.
Corporate Debt and Financial Exposure
HK Toll Road Private Limited operates under a concession agreement with the National Highways Authority of India (NHAI) for the construction, operation, maintenance, strengthening, and widening of a 59.87 km stretch of NH-7. The project, which is part of the NHDP Phase-V scheme, was estimated at Rs. 925.44 crores and was financed through a debt-to-equity ratio of 1.50:1 by the company's promoter and a consortium of lenders.Canara Bank Limited holds an exposure of Rs. 310 crores in HK Toll Road Private Limited. The account was classified as Non-performing Asset (NPA) on March 30, 2024, following repeated defaults in servicing principal payments. The Financial Creditor initiated the proceedings after recording the default and issuing a recall notice dated April 18, 2024.
The disbursement of credit facilities to HK Toll Road Private Limited occurred across multiple tranches, as detailed below:
| Date | Account Number | Amount (INR) |
|---|---|---|
| 31.10.2012 | 1903773000119 | 726,200,000 |
| 02.01.2013 | 1903773000119 | 275,900,000 |
| 12.03.2013 | 1903773000119 | 340,700,000 |
| 28.05.2013 | 1903773000119 | 180,000,000 |
| 16.07.2013 | 1903773000119 | 206,300,000 |
| 18.09.2013 | 1903773000119 | 134,000,000 |
| 08.10.2013 | 1903773000119 | 335,200,000 |
| 07.01.2014 | 1903773000119 | 123,500,000 |
| 10.04.2014 | 1903773000119 | 122,900,000 |
| 25.08.2014 | 1903773000119 | 78,200,000 |
| 26.11.2014 | 1903773000119 | 44,700,000 |
| 23.03.2015 | 1903773000119 | 139,700,000 |
| 27.04.2015 | 1903773000119 | 83,800,000 |
| 04.06.2015 | 1903773000119 | 91,900,000 |
| 01.07.2014 | 1903773000119 | 107,200,000 |
| 01.07.2015 | 1903773000119 | 100,000,000 |
NCLT Order Details and IRP Appointment
The NCLT, in its order dated June 11, 2026, admitted the petition filed by Canara Bank Limited. The claim amount of the Financial Creditor stood at INR 282.60 crore (including interest).The Tribunal appointed Mr. Sanjay Kumar Mishra, who has Registration No. IBBI/IPA-001/IP-P01047/2017-18/11730, as the Interim Resolution Professional (IRP) to manage the affairs of HK Toll Road Private Limited during the CIRP period.
The NCLT declared a moratorium under Section 14 of IBC, 2016, which prohibits the institution or continuation of any suits against the Corporate Debtor, the transfer of its assets, and any action to foreclose security interests created by the company. The order stipulates that the IRP must submit monthly reports regarding the progress of CIRP.
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