Akkme Food Craft Limited's application under IBC leads to Corporate Insolvency Resolution Process for defaulted debt
In a significant ruling, the Principal Bench of the National Company Law Tribunal (NCLT) in New Delhi has admitted a petition filed by Akkme Food Craft Limited against Regal Enterprises Limited, initiating the Corporate Insolvency Resolution Process (CIRP). The decision was handed down by Justice Anupinder Singh Grewal and Shri Ravindra Chaturvedi, Member (Technical), on July 9, 2026, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016.
The case revolves around a financial debt default of Rs. 1,05,74,726 by Regal Enterprises. Akkme Food Craft, the financial creditor, had extended an Inter-Corporate Deposit (ICD) to Regal Enterprises for its working capital needs. However, upon maturity, the repayment was defaulted when issued cheques were dishonored due to insufficient funds.
The Tribunal, after examining the evidence presented, including Inter-Corporate Deposit Receipts and bank statements, affirmed the existence of a financial debt and the occurrence of a default. It was noted that while filing information with an Information Utility is advisable, it is not mandatory. The Tribunal accepted alternative evidence to substantiate the default under the IBC provisions.
Regal Enterprises raised objections, alleging suppression of facts and asserting its solvency. However, the Tribunal found these claims unsubstantiated, lacking supportive financial documentation. The application was filed within the limitation period, with the default occurring on February 24, 2026, and the application filed on April 10, 2026.
Consequently, the Tribunal invoked a moratorium under Section 14 of the IBC, halting all proceedings against Regal Enterprises. Mr. Sandeep Agrawal has been appointed as the Interim Resolution Professional (IRP) to oversee the resolution process.
This case underscores the NCLT's commitment to ensuring compliance with the IBC, facilitating a structured resolution process for financial defaults while protecting the interests of creditors.
Bottom line:-
Insolvency and Bankruptcy Code, 2016 Section 7 application for initiation of Corporate Insolvency Resolution Process (CIRP) - Financial Creditor must provide evidence of financial debt and default - Filing of information with Information Utility not mandatory but directory in nature - Alternative evidence to prove default admissible under IBC.
Statutory provision(s):
Insolvency and Bankruptcy Code, 2016 - Sections 7, 14; Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016; IBBI (Information Utilities) Regulations, 2016; IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
