# In the matter of Equitas Small Finance Bank Ltd. vs. Jumbo Finvest (India) Ltd.

> NCLAT judgment dated 2025-12-16. Citation: TCN-2025-NCLAT-00606. Equitas Small Finance Bank Ltd. filed an appeal against the order dated 22.08.2025 passed by…

- **Court:** NCLAT
- **Order date:** 16 Dec 2025
- **Citation:** TCN-2025-NCLAT-00606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/equitas-small-finance-bank-ltd-vs-jumbo-finvest-66760f4b

## Summary

### Background

Equitas Small Finance Bank Ltd. filed an appeal against the order dated 22.08.2025 passed by the NCLT, Jaipur Bench, which rejected its Section 7 application against Jumbo Finvest (India) Ltd.

## Facts

Equitas Small Finance Bank Ltd. filed a Section 7 application against Jumbo Finvest (India) Ltd.

The NCLT, Jaipur Bench rejected the Section 7 application.

The Adjudicating Authority held that Jumbo Finvest (India) Ltd. is a Financial Service Provider.

RBI issued an order on 16.01.2020 prohibiting Jumbo Finvest (India) Ltd. from increasing its balance sheet size and accessing public funds.

RBI cancelled the registration of Jumbo Finvest (India) Ltd. with effect from 14.10.2025.

Equitas Small Finance Bank Ltd. sanctioned a term loan to Jumbo Finvest (India) Ltd. on 09.07.2018.

Jumbo Finvest (India) Ltd. allegedly started defaulting in repayment since 05.01.2019.

## Issues and analysis

### Issue 1: Whether Jumbo Finvest (India) Ltd. can be considered a corporate person against whom Section 7 …

**Ratio:** A financial service provider is not included in the definition of Corporate Persons under

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**Reasoning:** The Adjudicating Authority held that the Respondent is a Financial Service Provider

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**Interpretation:** The legislative scheme of the Code indicates the mechanism for initiating CIRP

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**Application:** The NCLAT upheld the Adjudicating Authority's decision, implying that Section 7

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Equitas Small…
- **Respondents:** Jumbo Finvest…
- **Advocates:** Bharat…; Hemant Ko…

## Timeline

- **2025-08-22 — Order Da…**: Order passed by the NCLT, Jaipur Bench rejecting Section 7 application filed by the…
- **2020-01-16 — RBI Orde…**: RBI issued an order directing Jumbo Finvest (India) Ltd. not to increase the size of its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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