Authority: National Company Law Tribunal (NCLT), Mumbai Bench – IV

Order Date: 22.06.2026

Case Overview

The Financial Creditor, Advantagesai Projects Private Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor, Akshay Techforge Private Limited, for initiating the Corporate Insolvency Resolution Process (CIRP). The petition was based on a default in repaying financial assistance. The total amount disbursed was Rs. 1,48,40,466, and with interest at 18% per annum as per a Memorandum of Understanding dated 09.04.2020, the default amount aggregated to Rs. 2,39,17,469.66 as of 30.09.2021. The petition was initially dismissed by the NCLT on 09.02.2023, which held that the transaction did not constitute a 'financial debt' under the Code. The Financial Creditor appealed to the National Company Law Appellate Tribunal (NCLAT), which, in its judgment dated 23.05.2025 (Company Appeal (AT) (INS) No. 510 of 2023), set aside the NCLT's order. The NCLAT found that the real intention of the parties was a loan transaction, not a property sale, as evidenced by agreements and ledger confirmations where the Corporate Debtor acknowledged the receipts as loans. The NCLAT directed the admission of the petition, leading to its restoration before the NCLT for consequential orders.

Final Outcome

The NCLT admitted the petition (C.P. (IB) No. 1049/MB/2021) and initiated the CIRP against Akshay Techforge Private Limited. A moratorium under Section 14 of the Code was declared, effective immediately, prohibiting suits, asset transfers, enforcement of security interests, and recovery of property against the Corporate Debtor. Mr. Swapnil Mukund Agrawal (Registration No: IBBI/IPA-001/IP-P00845/2017-2018/11429) was appointed as the Interim Resolution Professional (IRP). The Financial Creditor was ordered to deposit Rs. 3,00,000 as interim finance for the initial CIRP costs, which is to be repaid on priority from available funds. The related Interlocutory Application (IA(IB) No. 3642 of 2025), which sought to restrain the Corporate Debtor from alienating assets, was disposed of as infructuous since the relief was subsumed by the automatic moratorium.

Topics: Corporate Insolvency, NCLT Proceedings, Financial Debt