NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH COURT VI

1b9e63bb1d7678699aa7b957a9b4077c.pdf

The National Company Law Tribunal (Mumbai Bench–VI) admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed jointly by Insta Capital Pvt. Ltd. and Richbond Capital Pvt. Ltd. against M/s JBS Enterprises Ltd. after finding that the financial creditors had disbursed loans totaling about ₹2.24 crore and the corporate debtor defaulted in repayment (with total dues of about ₹2.44 crore including interest), and despite objections by the corporate debtor regarding technical defects (such as incorrect name, unstamped documents, and lack of approvals), the Tribunal held that the existence of financial debt and default was clearly established through records, acknowledgements, dishonoured settlement cheques, and conduct of the debtor; relying on precedents like Innoventive Industries Ltd v ICICI Bank Ltd, the Tribunal reiterated that once default is proven, the application must be admitted, and accordingly initiated the Corporate Insolvency Resolution Process (CIRP), imposed a moratorium under Section 14, and appointed an Interim Resolution Professional to take over management of the company.