# In the matter of Nishit Sharma vs. Jana Small Finance Bank & Anr.

> NCLAT judgment dated 2025-05-20. Citation: TCN-2025-NCLAT-00024. The appeal was filed against an order dated 2025-04-24, which admitted a Section 7…

- **Court:** NCLAT
- **Order date:** 20 May 2025
- **Citation:** TCN-2025-NCLAT-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nishit-sharma-vs-jana-small-finance-bank-anr-5d4e22f1

## Summary

### Background

The appeal was filed against an order dated 2025-04-24, which admitted a Section 7 application filed by the Financial Creditor (Respondent No. 1). The financial facilities were extended to the Corporate Debtor, Brandscale Innovations Pvt. Ltd. Default occurred, leading the Financial Creditor to declare the account NPA and initiate proceedings for a principal amount of Rs. 11,07,23,633 plus interest. The Corporate Debtor objected to the Section 7 application, but the Adjudicating Authority found debt and default and admitted the application.

## Facts

Nishit Sharma filed an appeal against the order of the Adjudicating Authority, which admitted a Section 7 application filed by Jana Small Finance Bank & Anr. (Respondent No. 1) against Brandscale Innovations Pvt. Ltd. (Corporate Debtor). The financial facilities were extended to the Corporate Debtor, and upon default, the Financial Creditor declared the account NPA and initiated proceedings. The Corporate Debtor objected to the Section 7 application, but the Adjudicating Authority admitted it. The Appellant sought adjournment to settle with the Financial Creditor, but no settlement was achieved. The Financial Creditor encashed a Fixed Deposit. The Appellant argued that the Adjudicating Authority has discretion in admitting the application, referencing 'Vidarbha

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by the …

**Ratio:** The Adjudicating Authority has the power to admit a Section 7 application if debt and

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**Reasoning:** The Adjudicating Authority noticed the submissions advanced by the Appellant relying on

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**Interpretation:** The interpretation of Section 7 of the IBC and the discretion of the

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**Application:** In this case, the court found no grounds to interfere with the Adjudicating

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Nishit S…
- **Respondents:** Brandscale…; Jana Small…

## Timeline

- **2025-04-24 — Order Da…**: Order passed by the Adjudicating Authority admitting Section 7 application filed by the…
- **2025-05-20 — Hearing…**: Hearing of the appeal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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