Capri Global Capital Limited Vs Silver Jubilee Motors Limited (NCLT Mumbai)
Summary: The NCLT Mumbai Bench-VI admitted Capri Global Capital Limited’s application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Silver Jubilee Motors Limited, rejecting objections based on a subsequent conditional one-time settlement, part-payments and loan statements describing the accounts as “Live”. The application, filed on 3 March 2026, claimed a default of Rs.2,66,04,388.99 as on 23 February 2026, with 3 April 2025 pleaded as the date of default. The debt arose from facilities of Rs.3.50 crore and Rs.82.25 lakh extended under agreements dated 31 August 2015 and 31 August 2016. Earlier CIRP proceedings initiated by Capri had been withdrawn following regularisation of overdue amounts. After renewed defaults, the creditor issued a fresh SARFAESI demand notice and pursued security enforcement. The order also records another creditor’s CIRP proceedings, subsequently withdrawn following settlement.
The corporate debtor relied on an OTS approval dated 18 March 2026 for Rs.1.98 crore, entered into after the present petition was filed. It initially reported payments of Rs.90.50 lakh and subsequently Rs.98.50 lakh up to 28 April 2026. It argued that the settlement novated the original contractual obligations under Section 62 of the Indian Contract Act, 1872, that acceptance of payments attracted waiver and estoppel, and that the remaining settlement liability had fallen below the Rs.1 crore threshold under Section 4. Relying on Swiss Ribbons Pvt. Ltd. v. Union of India, it submitted that insolvency jurisdiction should not be used for coercive recovery. Through a separate application under Section 60(5) read with Rule 11 of the NCLT Rules, 2016, it sought to introduce the creditor’s loan statements dated 28 May 2026 after the matter had been reserved for orders. Following Dena Bank (now Bank of Baroda) v. C. Shivakumar Reddy, the Tribunal permitted those relevant, pre-existing statements to be taken on record.
