NCLT Mumbai Initiates Insolvency Proceedings Against Pune-Based EV Startup Tork Motors

The NCLT Mumbai has admitted an insolvency plea against Pune-based EV start-up Tork Motors, once backed by the late industrialist Ratan Tata, Bharat Forge, and Ola's Bhavish Aggarwal over a debt of Rs. 1.29 crore. It appointed Anagha Anasingaraju as the Interim Resolution Professional (IRP) until a Resolution Professional is appointed.The move follows a petition by Unaprime Investment Advisors, which claims that the company owes over Rs 1 crore in fees for professional advisory services The coram, comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar stated in its order dated 31 October that there was debt as well as default warranting initiation of CIRP. “The CD has committed default in payment of an admitted operational debt. The Application filed under Section 9 of the IBC is complete and all procedural conditions have been met by the Operational Creditor, including service of demand notice, non-receipt of payment, and compliance with tax obligations. There exists no pre-existing dispute regarding the claim. In view of the above, we are forced to admit the CD to CIRP" Unaprime had entered into an agreement with Tork in September 2022 to help raise up to USD 50 million. The company claimed a 3% success fee after Tork signed agreements with Bennett Coleman & Company Ltd. (BCCL), including a Rs 3.25 crore share subscription warrant and a Rs 32.5 crore advertising credit line. Despite repeated invoices and reminders up until February 2024, the payment was not made. Subsequently, it filed an insolvency application in January 2025. Tork Motors admitted the debt but said it could not pay due to a cash crunch. The company said a Rs 180 crore investment deal with Maxis Advisors LLP failed and operations had stalled. It requested more time for settlement, saying that insolvency proceedings would be “commercially unviable and counterproductive.” The Tribunal rejected this plea observing that such a plea does not affect the maintainability of the present petition. It said, "the IBC does not make financial distress or intent to pay a valid defence against an otherwise admitted and defaulted debt." It added “the CD has committed default in discharging its liability. The debt has not been disputed on any legally tenable ground, and the CD's plea for time to secure future funding does not affect the maintainability of the Application under Section 9.” The tribunal declared a moratorium and directed Unaprime to deposit Rs 3 lakh towards initial insolvency costs.Case Name: Unaprime Investment Advisors Private Limited Vs Tork Motors Private Limited Case Number: C.P. (IB)/568(MB)2025For Applicant: Advocate Rohit Gupta instructed by Advocate Shruti For Respondent: Advocate Pranav ShahClick here to read/download order

NCLT Mumbai Initiates Insolvency Proceedings Against Pune-Based EV Startup Tork Motors

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