Mumbai: NCLT Admits Insolvency Plea Against Motocruizer Rental LLP Over ₹4.95 Crore Default, Initiates CIRP
May 05, 2026
NCLT Mumbai has admitted an insolvency plea against Motocruizer Rental LLP over a ₹4.95 crore default and initiated CIRP. An IRP has been appointed as the company cited Covid-related disruptions for its financial distress.
Mumbai, May 5: The National Company Law Tribunal (NCLT), Mumbai bench, has admitted an insolvency plea filed by Motocruizer Rental LLP, initiating the Corporate Insolvency Resolution Process (CIRP) against the company after it defaulted on debts amounting to nearly.
The company, which filed the petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, informed the tribunal that it had accumulated financial liabilities of Rs 4,22,94,519 towards 30 financial creditors and Rs 72,05,993 towards 21 operational creditors, aggregating to a total debt of Rs 4,95,00,512 at the time of filing.
Company cites pandemic-led financial distress
A Limited Liability Partnership Agreement was executed on January 19, 2017, followed by supplementary agreements dated June 29, 2017, August 31, 2021, and March 6, 2025.
Explaining the reasons for its financial distress, the company submitted that the COVID-19 pandemic brought the mobility sector to a standstill. This led to loss of vehicles, cessation of lease rentals, and abandonment of vehicles by end-users, resulting in severe liquidity constraints and an inability to service its financial obligations.
Reiterating this, the tribunal noted that the disruptions caused by the pandemic had significantly impacted the company’s operations, ultimately pushing it into default.
NCLT admits plea, appoints IRP
After reviewing the application and supporting documents, the bench held that the company had established the existence of default and that the petition was complete in all respects as required under law. It observed that there was no reason to deny admission of the plea.
Accordingly, the tribunal appointed insolvency professional Kanhaiya Maheshwari as the Interim Resolution Professional (IRP) to take charge of the company’s affairs and oversee the resolution process.
Moratorium imposed during resolution process
The NCLT also imposed a moratorium under Section 14 of the IBC, prohibiting the institution or continuation of legal proceedings against the company, transfer or disposal of its assets, and enforcement of any security interest during the CIRP period.
The IRP has been directed to make a public announcement inviting claims from creditors and to manage the affairs of the company during the resolution process.
The management of Motocruizer Rental LLP will now vest with the IRP, and its designated partners have been directed to extend full cooperation and furnish all relevant documents and information.
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The tribunal further clarified that essential goods and services to the company shall not be terminated or interrupted during the moratorium period, ensuring continuity of operations while the resolution process is underway..
The company, which filed the petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, informed the tribunal that it had accumulated financial liabilities of Rs 4,22,94,519 towards 30 financial creditors and Rs 72,05,993 towards 21 operational creditors, aggregating to a total debt of Rs 4,95,00,512 at the time of filing.
Company cites pandemic-led financial distress
A Limited Liability Partnership Agreement was executed on January 19, 2017, followed by supplementary agreements dated June 29, 2017, August 31, 2021, and March 6, 2025.
Explaining the reasons for its financial distress, the company submitted that the COVID-19 pandemic brought the mobility sector to a standstill. This led to loss of vehicles, cessation of lease rentals, and abandonment of vehicles by end-users, resulting in severe liquidity constraints and an inability to service its financial obligations.
Reiterating this, the tribunal noted that the disruptions caused by the pandemic had significantly impacted the company’s operations, ultimately pushing it into default.
NCLT admits plea, appoints IRP
After reviewing the application and supporting documents, the bench held that the company had established the existence of default and that the petition was complete in all respects as required under law. It observed that there was no reason to deny admission of the plea.
Accordingly, the tribunal appointed insolvency professional Kanhaiya Maheshwari as the Interim Resolution Professional (IRP) to take charge of the company’s affairs and oversee the resolution process.
Moratorium imposed during resolution process
The NCLT also imposed a moratorium under Section 14 of the IBC, prohibiting the institution or continuation of legal proceedings against the company, transfer or disposal of its assets, and enforcement of any security interest during the CIRP period.
The IRP has been directed to make a public announcement inviting claims from creditors and to manage the affairs of the company during the resolution process.
The management of Motocruizer Rental LLP will now vest with the IRP, and its designated partners have been directed to extend full cooperation and furnish all relevant documents and information.
Also Watch:
The tribunal further clarified that essential goods and services to the company shall not be terminated or interrupted during the moratorium period, ensuring continuity of operations while the resolution process is underway..