Authority: National Company Law Tribunal Chandigarh Bench (Court-I)

Order Date: 11 June 2026

Case Overview

The application was filed by Hiveloop Capital Private Limited, an RBI-licensed Non-Banking Financial Institution (NBFC), against RVD Sales Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).

The Financial Creditor, Hiveloop Capital, had sanctioned and disbursed a Small Business Hypothecation Loan of ₹1,00,00,000 (One Crore) to the Corporate Debtor, RVD Sales, on 28 June 2022 (Loan Account No. ORG6H0CSLEK7QQQC43NBPMBNJ1XOV). The last disbursement was made on 19 November 2022. The Corporate Debtor executed a loan agreement and other security documents, undertaking to repay the amount with interest as per a monthly schedule.

RVD Sales defaulted on its repayment obligations. The last payment received was ₹44,00,000 on 19 November 2022. The date of default was recorded as 19 December 2022. As of 10 October 2023, the total outstanding debt was ₹1,33,27,816, comprising a principal outstanding of ₹99,69,152 and accrued interest/penal charges of ₹33,58,664. Hiveloop Capital provided a detailed invoice-wise breakdown of the dues.

Prior to the IBC application, Hiveloop Capital had initiated arbitration proceedings. An Arbitral Award dated 25 May 2023 (Claim Petition No. 9153/2023) was passed in its favour, which attained finality. A subsequent demand notice was issued to the Corporate Debtor on 14 October 2023, which also went unanswered. The respondent was proceeded ex-parte by the NCLT on 29 April 2025 due to non-appearance.

The Adjudicating Authority analyzed four key issues:

1. Existence of Financial Debt: The tribunal concluded the transaction was a 'Financial Debt' under Section 5(8) of the IBC, as it involved a disbursal of money (₹1 crore loan) against the consideration for the time value of money.

2. Meeting the Threshold Limit: The claimed amount of ₹1.33 crore was found to be above the minimum threshold prescribed under Section 4 of the IBC.

3. Existence of Default: The tribunal found a clear default based on the loan agreement, statement of account, invoices, and the unchallenged Arbitral Award.

4. Limitation: The application, filed on 28 February 2024, was within the three-year limitation period from the stated date of default (19 December 2022).

Final Outcome

The NCLT admitted the petition (CP (IB) No. 87/Chd/HP/2024) and initiated the Corporate Insolvency Resolution Process (CIRP) against RVD Sales Private Limited.

Key directions issued:

  • A moratorium under Section 14 of the IBC is declared with immediate effect, prohibiting any suits, transfer of assets, enforcement of security interest, or recovery of property against the Corporate Debtor.
  • Mr. Rajiv Bhambri (IBBI Registration No. IBBI/IPA-002/IP-N00152/2017-18/10399) is appointed as the Interim Resolution Professional (IRP).
  • The Financial Creditor is directed to pay an advance of ₹2,00,000 to the IRP within two weeks for the smooth conduct of the CIRP.
  • The IRP is directed to make a public announcement of the CIRP, manage the Corporate Debtor as a going concern, and serve notices to relevant statutory authorities.
  • The matter is listed for next hearing on 28 July 2026 for the IRP to appraise the tribunal on progress.

Topics: Corporate Insolvency, Loan Default, NCLT Order