Advantagesai Projects Private Limited Vs Akshay Techforge Private Limited (NCLT Mumbai)
The National Company Law Tribunal (NCLT), Mumbai Bench, considered a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Financial Creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for alleged default in repayment of financial assistance. The Financial Creditor also filed an interlocutory application seeking interim protection restraining the Corporate Debtor from alienating, encumbering or creating third-party interests over its assets pending restoration and admission of the company petition.
According to the Financial Creditor, it had disbursed a total of ₹1,48,40,466 to the Corporate Debtor as financial assistance. It was submitted that under the Memorandum of Understanding dated 09.04.2020, the Corporate Debtor agreed to pay interest at 18% per annum, resulting in an outstanding default of ₹2,39,17,469.66 as on 30.09.2021, which was stated to be the date of default.
The Tribunal noted that the company petition had earlier been dismissed by the NCLT on 09.02.2023 on the ground that the transaction did not constitute a financial debt under Section 5(8) of the IBC. The Financial Creditor challenged that order before the National Company Law Appellate Tribunal (NCLAT) in Company Appeal (AT) (INS) No. 510 of 2023, and the NCLAT, by judgment dated 23.05.2025, allowed the appeal and set aside the earlier order. Following the appellate decision, the Financial Creditor filed a restoration application, which was allowed, and the company petition was restored for consequential orders.
