Golden Medows Export Private Limited Vs PS IT Infrastructure & Services Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench admitted a Section 7 application filed by Golden Medows Export Private Limited against PS IT Infrastructure & Services Limited for initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
The financial creditor claimed a total default of Rs. 3,10,02,122 as on 30.09.2025, comprising principal outstanding of Rs. 2.90 crore and interest of Rs. 20,02,122 at 9% per annum. According to the application, the financial creditor had disbursed Rs. 2.90 crore to the corporate debtor as Inter Corporate Deposit (ICD) in seven tranches between 26.06.2024 and 29.08.2024 pursuant to a Memorandum of Understanding dated 20.06.2024. The repayment date under the MoU was fixed as 12 months from the date of execution, and the date of default was stated as 21.06.2025.
The applicant relied on documents including the MoU, bank statements, money receipts issued by the corporate debtor, legal notices, ledger accounts, and NeSL Form-D reflecting record of default.
The corporate debtor opposed the petition on several grounds. It argued that the insolvency proceedings had been initiated only as a recovery mechanism and not for insolvency resolution. It also contended that the company was profit-making and not insolvent. Relying on the Supreme Court judgment in Invent Asset Securitization and Reconstruction Pvt. Ltd. v. Girnar Fibers Ltd., the corporate debtor submitted that the IBC could not be used for recovery proceedings.
