Authority: National Company Law Tribunal, Jaipur Bench

Order Date: 09 June 2026

Case Overview

The National Company Law Tribunal (NCLT), Jaipur Bench heard a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by M/s Shantanu Investments Private Limited (Financial Creditor) against M/s Aksh Optifibre Limited (Corporate Debtor). The petition sought initiation of Corporate Insolvency Resolution Process (CIRP) over an alleged financial debt of Rs 2,00,00,000 (principal) with total claimed amount of Rs 3,33,14,075 including interest and penal interest.

The Financial Creditor claimed that the Corporate Debtor had approached them in 2010-2011 for financial assistance in the form of an unsecured loan of Rs 2 crore with promised interest of 15% per annum, escalating to 24% in case of default. The creditor submitted ledger accounts, confirmation letters, TDS deductions, recall notices, and financial statements showing the debt reflected in the Corporate Debtor's books from FY 2011-12 to FY 2020-21.

The Corporate Debtor contested the petition, claiming: (1) no financial debt existed as defined under IBC, (2) the amount was disputed due to alleged overcharging of electricity bills by the petitioner, (3) the petition was barred by limitation as the loan was obtained during 2010-2012, and (4) the petitioner had concealed material facts about the relationship between the parties. The Corporate Debtor claimed that Mr. Arun Sood, director of the petitioner, was also a director in the Corporate Debtor and had leased premises to them, leading to disputes over inflated electricity invoices.

The NCLT Jaipur Bench initially had dissenting opinions from the Judicial Member (who dismissed the petition) and Technical Member (who admitted it), leading to the matter being referred to a third member for resolution under Rule 60 of NCLT Rules.

Key Findings

The adjudicating member examined: (1) existence of financial debt and default, (2) whether pre-existing disputes can be considered under Section 7, and (3) whether material facts were concealed.

On financial debt, the member found that the Corporate Debtor had consistently acknowledged the debt in its balance sheets from FY 2011-12 to FY 2020-21 under headings "Unsecured Loans" and "Inter Corporate Deposits." The member cited Supreme Court precedent in Akbarali Nanji vs Union of India that write-offs are internal accounting procedures that don't extinguish creditor rights. The Corporate Debtor's own communication dated 03.09.2018 to Income Tax authorities explicitly acknowledged the amount as an "unsecured loan" carrying interest.

On default, the Financial Creditor had issued recall notice on 12.08.2019 and legal notice on 22.01.2022. The NeSL record showed default status as "Deemed to be Authenticated" with default date of 01.09.2019.

Regarding pre-existing disputes, the member held that under Section 7 proceedings, the adjudicating authority only needs to satisfy itself about existence of debt and default, not adjudicate disputes like those under Section 9. The electricity bill adjustment claims were based on oral understandings without written settlement documents.

On concealment of facts, the member found that while there were prior relationships between the parties, this didn't establish fraudulent intent or artificial debt creation, and the petitioner had addressed these allegations in rejoinder.

Final Outcome

The NCLT admitted the petition under Section 7 of IBC, 2016, declaring:

  • Initiation of Corporate Insolvency Resolution Process against Aksh Optifibre Limited
  • Declaration of moratorium under Section 14 of the Code
  • Appointment of Interim Resolution Professional
  • Direction for public announcement as per Code regulations

The matter was directed to be placed before the regular bench for further proceedings.

Topics: Corporate Insolvency, Debt Dispute, NCLT Proceedings