Authority: National Company Law Tribunal, Mumbai Bench-VI
Order Date: 10 July 2026
Case Overview
The National Company Law Tribunal (NCLT) Mumbai Bench-VI heard a petition (C.P. (IB)/769/MB/2025) filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Jeevan Jyoti Vanijya Limited, a Non-Banking Financial Company (Financial Creditor), against Sunstar Realty Development Limited (Corporate Debtor). The petition sought the initiation of Corporate Insolvency Resolution Process (CIRP), declaration of a moratorium, and appointment of an Interim Resolution Professional (IRP).
The Financial Creditor had disbursed a loan of ₹3,00,00,000 (Three Crores) to the Corporate Debtor as an Inter-Corporate Deposit at an interest rate of 9% per annum. The loan was disbursed in three tranches of ₹1,00,00,000 each on 22 November 2024, 25 November 2024, and 27 November 2024. The Corporate Debtor defaulted on the repayment, failing to pay both the principal and interest. The total default amount was ₹3,09,34,520 as of 31 May 2025, comprising ₹3,00,00,000 in principal and ₹9,34,520 in accrued interest up to 31 March 2025. The date of default was recorded as 27 January 2025.
The applicant provided extensive documentation, including the loan agreement, bank statements, reminders, a legal demand notice, and an account confirmation from the Corporate Debtor. Despite being served a notice by the Tribunal, the Corporate Debtor failed to file a reply, leading the Tribunal to close its right to do so on 14 October 2025. A key legal contention was the applicant's inability to file a Form D from the National E-Governance Services Limited (NeSL), an information utility. The applicant relied on a judgment from the National Company Law Appellate Tribunal (NCLAT) in Vijay Kumar Singhania vs. Bank of Baroda & Anr., which held that submitting evidence of default from an information utility is not mandatory if other evidence is provided.
Final Outcome
The NCLT admitted the petition, initiating the CIRP against Sunstar Realty Development Ltd (CIN: L70102MH2008PLC184142). The Tribunal appointed Mr. Vinod Kumar Chaurasia (IP Registration No. IBBI/IPA-001/IP-P00100/2017-18/10200) as the IRP. A moratorium under Section 14 of the IBC was declared, prohibiting any legal proceedings, transfer of assets, or recovery actions against the Corporate Debtor. The order mandates that the supply of essential goods and services to the Corporate Debtor shall not be interrupted. The Financial Creditor was directed to deposit ₹3,00,000 with the IRP to meet initial CIRP costs, which will be treated as interim finance and repaid on priority. The IRP is required to make a public announcement of the CIRP and submit monthly progress reports to the Tribunal. The Registry was directed to communicate the order to all parties and relevant authorities, including the Registrar of Companies and the Insolvency and Bankruptcy Board of India (IBBI).
Topics: Corporate Insolvency, Debt Default, NCLT Order