PBA Infrastructure Enters Corporate Insolvency Under NCLT Order

Default Claim: Rs 1,126.41 crore; Date of Order: September 29, 2026.

Reader Takeaway: Management control has shifted to an IRP, with the company signaling an immediate appeal to the NCLAT.

What just happened

The National Company Law Tribunal (NCLT) Mumbai Bench has formally admitted a petition by Canara Bank to initiate the Corporate Insolvency Resolution Process (CIRP) against PBA Infrastructure Limited. The tribunal has appointed Mr. Vijay Pitambar Lulla as the Interim Resolution Professional (IRP) to manage the company's affairs during this process.

Why this matters

The admission of the petition triggers an immediate moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC). This effectively halts all ongoing legal proceedings against the company, prevents any transfer of assets, and stops creditors from enforcing security interests. Shareholders must note that the existing management no longer retains control over company operations.

The backstory

Canara Bank filed the application citing an alleged default of Rs 1,126.41 crore, dating back to March 2012. PBA Infrastructure had contested the move, arguing that the claim was time-barred and that the proceedings were being used improperly for debt recovery rather than insolvency resolution. The NCLT bench overruled these objections, concluding that the lender had provided sufficient evidence of debt and default.

What changes now

PBA Infrastructure has confirmed it plans to appeal the NCLT’s decision at the National Company Law Appellate Tribunal (NCLAT). Until such time as any stay or relief is granted by the appellate authority, the CIRP remains the governing framework for the company.

Risks to watch

Investors face significant uncertainty as the company transitions into a resolution phase. The primary risks involve the potential erosion of shareholder value during the resolution process and the high hurdle of overturning an NCLT admission at the appellate level.