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

Order Date: 15 June 2026

Case Overview

This order pertains to a petition (CP (IB) No. 51/7/AHM/2026) filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by Ratnaafin Capital Private Limited (Financial Creditor) against Saarthi Pedagogy Private Limited (Corporate Debtor). The Financial Creditor sought the initiation of the Corporate Insolvency Resolution Process (CIRP) due to a default in repaying a financial debt of ₹2,12,99,747/- (including interest) as of 28 January 2026. The date of default was 10 November 2024.

The financial debt originated from a Working Capital Term Loan of ₹2,25,00,000/- sanctioned to the Corporate Debtor on 15 June 2024. The loan agreement and supporting documents (Demand Promissory Note, Deed of Hypothecation, Deeds of Guarantee) were executed on 22 July 2024, and the amount of ₹2,23,39,110/- was disbursed on 23 July 2024. The Corporate Debtor made some repayments, including ₹26,53,460/- on 10 September 2024, ₹26,53,460/- on 10 October 2024, and ₹1,00,000/- on 1 February 2025, but failed to clear the outstanding dues. A loan recall notice was issued on 10 December 2024.

The Financial Creditor submitted extensive evidence, including the loan sanction letter, agreement, account statements, certificates under the Bankers' Books Evidence Act, and a Form-D from the National E-Governance Services Limited (NESL) Information Utility, which showed the default status as 'Deemed to be Authenticated'.

In its Affidavit-in-Reply dated 30 April 2026, the Corporate Debtor admitted to availing the loan, its liability for the outstanding amount, and its inability to repay due to financial constraints and deteriorated business operations. It explicitly stated it had no objection to the initiation of CIRP.

The Adjudicating Authority, perused the record and found the petition complete, filed within the limitation period (within three years from the date of default), and the debt amount exceeding the threshold under Section 4 of the IBC. It relied on judicial precedents, including Innoventive Industries Ltd. v. ICICI Bank Ltd. and Power Trust v. Bhuvan Madan, which hold that the authority's role at the admission stage is confined to ascertaining the existence of a financial debt and a default, which were conclusively established and admitted in this case.

Final Outcome

The NCLT admitted the petition and initiated the Corporate Insolvency Resolution Process (CIRP) against Saarthi Pedagogy Private Limited under Section 7(5)(a) of the IBC. The following directions were issued:

  • A moratorium under Section 14 of the IBC is declared with immediate effect, prohibiting suits, asset transfers, recovery actions, and property recovery against the Corporate Debtor until the CIRP is complete.
  • Mr. Ravi Kapoor (Registration No. IBBI/IPA-002/IP-N00121/2017-18/10290) is appointed as the Interim Resolution Professional (IRP).
  • The IRP must make a public announcement of the CIRP initiation within three days and take charge of the Corporate Debtor's assets and documents within seven days.
  • The Financial Creditor is directed to pay the IRP an advance of ₹5,00,000 (exclusive of taxes) within seven days to meet initial CIRP costs, subject to ratification by the Committee of Creditors.
  • The IRP must submit a status report on taking control of assets within 30 days and periodical progress reports thereafter.
  • The Registry is to communicate the order to all parties, the Registrar of Companies, and the IBBI. The ROC must update the Corporate Debtor's status on the MCA portal to 'under CIRP'.
  • The commencement of CIRP is effective from the date of this order (15 June 2026).

Topics: Corporate Insolvency, Debt Default