Authority: National Company Law Tribunal, Ahmedabad Bench (Court 2)
Order Date: 06/07/2026
Case Overview
The National Company Law Tribunal (NCLT) Ahmedabad heard proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC) in the matter of Profectus Capital Private Limited (Applicant/Financial Creditor) versus M K Fashion Hub Private Limited (Respondent/Corporate Debtor). The case reference is IA(Liq.)/5(AHM)2026 in C.P. (IB)/126(AHM)2024. The bench comprised Mrs. Chitra Hankare (Member Judicial) and Dr. Velamur G Venkata Chalapathy (Member Technical).
Representation included Mr. Nitish Banger for the Applicant, Mr. Indrajeet Mukhreja as the Resolution Professional, and Mr. Rajiv Chawla for the Suspended Management. The Suspended Management raised objections to the application, claiming MSME (Micro, Small and Medium Enterprise) status for the corporate debtor. They also cited technical difficulties in uploading their reply to the DMS portal, though physical copies had been filed.
Key issues discussed included the valuation of assets being considered "far low" and the absence of resolution plans. It was noted that many creditors had already sold assets under the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act).
Final Outcome
The Tribunal directed the Resolution Professional to reassess the liability and claims of Financial Creditors based on the submissions made. The RP was ordered to file a fresh Form H reflecting the updated claim liability and to submit a reply to the objections raised by the Suspended Management via affidavit. Additionally, the Committee of Creditors (COC) was directed to pay the CIRP (Corporate Insolvency Resolution Process) costs to the liquidator within 15 days, following applicable rates as per IBBI (Insolvency and Bankruptcy Board of India) guidelines. The matter was listed for further consideration on 03/08/2026.
Topics: Insolvency Proceedings, MSME Status, Asset Valuation