Case Note & Summary
The case involved an appeal filed by Sushma Jayant Soni against an order of the National Company Law Tribunal (NCLT), Mumbai, which admitted a petition under section 7 of the Insolvency and Bankruptcy Code (IBC) filed by Advantagesai Projects Pvt. Ltd. The original petition, C.P. (IB) No. 1049/MB/2021, was dismissed by the NCLT in February 2023 on the grounds that the transaction did not constitute a financial debt. Respondent No. 1 appealed this dismissal, and the Appellate Tribunal admitted the appeal in May 2025, reversing the NCLT's decision. The appellant subsequently filed a civil appeal before the Supreme Court, which was dismissed as not-pressed in July 2025. The appellant then sought to recall the Tribunal's order, which was also dismissed in December 2025. A further civil appeal against this dismissal was rejected in February 2026. The NCLT admitted the petition again in June 2026, prompting the current appeal. During the proceedings, the appellant expressed willingness to deposit the amount stated in the application under section 7, but this was not previously submitted to the NCLT. The Tribunal dismissed the appeal, allowing the NCLT to decide on any future applications regarding the deposit. The appeal was disposed of while keeping the rights of all parties open.
Headnote
A) Insolvency and Bankruptcy - Admission of Petition - Appeal against NCLT's admission of petition under section 7 - National Company Law Appellate Tribunal dismissed the appeal, allowing the petition filed by Respondent No. 1, as the appellant's arguments regarding deposit of amount were not previously made before the NCLT. The Tribunal granted liberty to file an application to challenge the issuance of Form G regarding the deposit, leaving the decision to the NCLT on merits (Paras 2-3).
Issue of Consideration
Whether the appeal against the NCLT's order admitting the petition under section 7 of the IBC should be upheld.
Final Decision
The Tribunal dismissed the appeal against the NCLT's order admitting the petition under section 7 of the IBC, allowing the respondent's claim of financial debt. The Tribunal granted liberty to the appellant to file an application regarding the deposit, which the NCLT would decide on merits.
Law Points
- IBC
- financial debt
- appeal dismissal
- NCLT jurisdiction
- application maintainability
