Authority: National Company Law Tribunal (NCLT), New Delhi Principal Bench

Order Date: 06 July 2026

Case Overview

This order pertains to a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner is Mr. Rikhab Chand Jain, operating as the proprietor of M/s T. T. Industries, who is a financial creditor. The respondent is M/s DRP Financial Services Private Limited, the corporate debtor.

The principal allegation from the petitioner is that the corporate debtor has defaulted on a financial debt. The petitioner's counsel submitted that a loan of ₹1,00,00,000 (Rupees One Crore) was advanced to the corporate debtor on 24 March 2022. It was argued that the existence of the debt and default is evidenced by the fact that the corporate debtor paid interest on this loan at a rate of 14% per annum on three separate occasions. Crucially, these interest payments are reflected in the Income Tax Returns filed by the corporate debtor for the financial year 2022-23. The petitioner contended that these facts satisfy the requirements for initiating Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC, even in the absence of a formal written loan agreement.

A significant procedural challenge noted was that the petitioner does not know the current whereabouts of the respondents, necessitating a request for service via publication.

The bench, comprising Justice Anupinder Singh Grewal (President) and Shri Ravindra Chaturvedi (Member Technical), heard the submissions in a hybrid hearing (physical and video conference). The petitioner was represented by advocates Mr. Mukul Rao and Mr. Anuj Kumari Bhardwaj.

Final Outcome

The NCLT admitted the petition and issued formal notice to the respondents (the corporate debtor and others). The petitioner was directed to serve this notice through all permissible modes and to file an affidavit of service within one week. The tribunal also granted the petitioner's request, permitting service upon the respondents via publication in a newspaper due to their unknown whereabouts. The respondents were given one week from receiving the order to file their reply. The matter has been listed for the next hearing on 20 July 2026.

Topics: Insolvency, Financial Debt, NCLT