# Small Industries Development Bank of India vs. Darsh Pharmachem Private Limited

> NCLT judgment dated 2026-10-08. Citation: TCN-2026-NCLT-01161. Small Industries Development Bank of India (SIDBI), as the Financial Creditor, filed a Company…

- **Court:** NCLT
- **Order date:** 8 Oct 2026
- **Citation:** TCN-2026-NCLT-01161
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/darsh-pharmachem-private-limited-dn4ub

## Summary

### Background

Small Industries Development Bank of India (SIDBI), as the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Darsh Pharmachem Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default in payment of financial debt amounting to Rs. 1,03,70,394.48 as on 10.08.2026. The Corporate Debtor disputed the amount, interest calculations, FDR adjustments, and contended that the default amount did not meet the statutory threshold of Rs. 1 Crore, arguing that the petition was defective, premature, and incomplete.

## Facts

The Small Industries Development Bank of India (SIDBI), as the Financial Creditor, filed a Company Petition against Darsh Pharmachem Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition, registered on August 31, 2026, sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default in payment of a financial debt amounting to Rs. 1,03,70,394.48 as of August 10, 2026. The Financial Creditor is a corporation established under the Small Industries Development Bank of India Act, 1989, and the petition was filed through its Deputy General Manager (Legal), Mr. Praveen Mithal, who was authorized under Regulations 10 and 11 of the Small Industries Development Bank of India (General Regulations), 2000.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, is complete and satisfies the statutory …

**Ratio:** The Adjudicating Authority "shall" admit a Section 7 application if a default

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**Reasoning:** The NCLT found the application complete in material particulars, and the proposed IRP

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**Interpretation:** The amendment to Section 7(5)(a) removes discretion, making the admission of a

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**Application:** The Financial Creditor's application met these criteria, including the proposed

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Small Industries…; Small Industries…
- **Respondents:** Darsh Pharmachem…
- **Other parties:** Committee of…; Manish Kumar…
- **Advocates:** Harshil L…; Visha…; +1 more

## Timeline

- **29 December 2021 — Loan Sanction and…**: Small Industries Development Bank of India (SIDBI) sanctioned a Term Loan of Rs.…
- **31 December 2021 — First Loan Disbursement…**: First tranche of Rs. 1.94 Crores disbursed. Charge registered with the Registrar of…

## 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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