Jeevan Jyoti Vanijya Limited Vs Sunstar Realty Development Limited (NCLT Mumbai)
NCLT Mumbai Admits CIRP Despite Absence of NeSL Form D
The NCLT Mumbai admitted a Section 7 IBC application filed by Jeevan Jyoti Vanijya Limited against Sunstar Reality Development Ltd. The Financial Creditor had advanced Rs. 3 crore through three tranches at 9% annual interest. The Corporate Debtor defaulted, with Rs. 3,09,34,520 outstanding as on 31.05.2025, comprising principal and interest. The applicant produced the loan agreement, bank statement, reminders, demand notice, ledger and account confirmation.
The Corporate Debtor appeared once but filed no reply, and its right to file a reply was closed. Although the applicant did not submit NeSL Form D, it stated that Form C had been filed but Form D could not be generated due to issues at NeSL. The Tribunal agreed that Form D was not indispensable where other evidence established the financial debt and default.
Financial Debt and Default Established Through Documentary Evidence
The Tribunal found that the Rs. 3 crore loan, carrying 9% interest, constituted financial debt under Section 5(8)(a) of the IBC. It held that the applicant had successfully demonstrated disbursement of the loan and occurrence of default on 27.01.2025. The default was above the threshold prescribed under Section 4 and was supported by documentary evidence.
