Authority: National Company Law Tribunal Principal Bench, New Delhi
Order Date: 09.07.2026
Case Overview
The application was filed by Akkme Food Craft Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Regal Enterprises Limited (Corporate Debtor) for defaulting on repayment of an inter-corporate deposit (ICD) amounting to ₹1,05,74,726/- as on 31.01.2026. The financial debt originated from an ICD of ₹1,00,00,000/- disbursed in three tranches (₹20,00,000 on 28.07.2025, ₹20,00,000 on 29.07.2025, and ₹60,00,000 on 14.10.2025) carrying interest at 15% per annum. The corporate debtor issued two cheques totaling ₹1,04,49,754/- which were dishonored on 24.02.2026 with remarks "Funds Insufficient".
The corporate debtor raised multiple objections including suppression of facts, solvency claims, maintainability of application for recovery purposes, alleged mutual agreement for installment repayment from September 2026, and absence of mandatory default certificate from information utility. The tribunal heard arguments from both parties' legal representatives and examined documentary evidence including ICD receipts, bank statements, ledger accounts, email communications, cheques, and return memos.
Final Outcome
The NCLT admitted the petition and initiated Corporate Insolvency Resolution Process (CIRP) against Regal Enterprises Limited. The tribunal appointed Mr. Sandeep Agrawal (Registration No. IBBI/IPA-002/IP-N01060/2021-2022/13733) as Interim Resolution Professional. A moratorium under Section 14 of IBC was declared effective immediately. The financial creditor was directed to deposit ₹2,00,000 with the IRP for initial expenses. The IRP must make public announcement within 3 days and take charge of corporate debtor's assets. The corporate debtor's management now vests with the IRP under Section 17 of IBC.
Topics: Corporate Insolvency, Financial Default, NCLT Proceedings