Karan Bhatia Vs Tata Capital Financial Ltd. & Anr. (NCLAT Delhi)
The appeal before the National Company Law Appellate Tribunal, Delhi, challenged the order dated 11.09.2025 by which the Adjudicating Authority admitted a Section 7 application under the Insolvency and Bankruptcy Code. The financial creditor had filed the application alleging default by the corporate debtor in respect of a loan of Rs. 25 crore. As pleaded in Part IV of the application, the total amount claimed to be in default was Rs. 19,23,29,846 as on 07.12.2024. The date of default was stated as 05.09.2024, being the first instance of default, followed by further defaults in October and November, with the default continuing thereafter.
The appellant argued that as on 05.09.2024, only one instalment of approximately Rs. 41 lakh had fallen due, which was below the statutory threshold, and therefore the application could not have been admitted. It was contended that since no amendment application had been filed to change the date of default, the Adjudicating Authority erred in admitting the Section 7 application.
The Tribunal examined the pleadings in Part IV of the application and noted that it clearly stated that the default first occurred on 05.09.2024 and that the corporate debtor subsequently defaulted on instalments due in October and November, with the default continuing. The Tribunal held that the appellant’s contention that default should be confined only to the first instalment was not acceptable, as the pleadings expressly referred to multiple defaults. It was further observed that even if the default of three instalments alone was considered, the amount would exceed the prescribed threshold.
