Authority: National Company Law Tribunal (NCLT), Division Bench, Court - I, Ahmedabad

Order Date: 10 June 2026

Case Overview

Standard Capital Markets Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Areli Commerce Private Limited (Corporate Debtor) on 3 February 2026. The petition sought the initiation of the Corporate Insolvency Resolution Process (CIRP) due to a default in repaying a financial debt amounting to ₹1,73,11,278, with the date of default recorded as 15 May 2025.

The Financial Creditor's case was based on a Facility Agreement dated 31 March 2025, through which a Smart Credit Line/Revolving Credit Facility of ₹2,00,00,000 was sanctioned to the Corporate Debtor. A disbursement of ₹1,52,57,199 was made directly to UC Inclusive Credit Private Limited to settle an outstanding liability of the Corporate Debtor.

The Corporate Debtor, in its reply filed on 4 May 2026, admitted to the key facts: it had approached the Financial Creditor for the facility, the loan of ₹2.00 Crore was sanctioned, and the amount of ₹1,52,57,199 was disbursed to UC Inclusive Credit. Its principal defence was that it faced financial difficulties due to adverse market conditions, liquidity constraints, a slowdown in startup funding, and business disruptions, and it requested a deferment of recovery.

The Adjudicating Authority, upon perusal of the documents including the Facility Agreement, Sanction Letter, proof of disbursement, and a record of default from the National E-Governance Services Limited (NeSL), found the application complete. It held that the defence of financial hardship could not constitute a valid ground for rejecting a petition under Section 7 once the financial debt and default were established. Relying on Supreme Court precedents, the bench stated its role was limited to ascertaining the existence of a financial debt and the occurrence of default at the admission stage.

Final Outcome

The NCLT admitted the company petition (CP (IB) No. 49/7/AHM/2026) and initiated the Corporate Insolvency Resolution Process against Areli Commerce Private Limited. A moratorium under Section 14 of the IBC was declared, prohibiting the institution or continuation of suits, transfer of assets, enforcement of security interest, and recovery of property from the Corporate Debtor, effective immediately until the completion of CIRP.

Mr. Varun Anil Chopra (Registration No. IBBI/IPA-001/IP-P-02950/2025-2026/14525) was appointed as the Interim Resolution Professional (IRP). The Financial Creditor was directed to pay the IRP an advance of ₹3,00,000 (exclusive of taxes) within 7 days to meet initial CIRP costs. The IRP is mandated to make a public announcement, take charge of the Corporate Debtor's assets, and submit a status report to the tribunal within 30 days. The registry was directed to communicate the order to all concerned parties and update the Corporate Debtor's status on the MCA portal.

Topics: Insolvency, Corporate Debt, NCLT