# In the matter of DECOLIGHT CERAMICS LIMITED

> NCLT judgment dated 2026-01-12. Citation: TCN-2026-NCLT-00086. Rajradhe Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Jan 2026
- **Citation:** TCN-2026-NCLT-00086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/decolight-ceramics-limited-b9086dc3

## Summary

### Background

Rajradhe Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Decolight Ceramics Limited due to a default of Rs. 38,35,55,949.14/- as of 30.01.2024. The default is continuous from 30.09.2013.

## Facts

Bank of India originally sanctioned credit facilities worth Rs. 27,35,00,000/- to Decolight Ceramics Limited.

The Corporate Debtor defaulted in repayments from 30.06.2013, and the account was classified as NPA on 30.09.2013.

Bank of India issued notices under Section 13(2) of the SARFAESI Act for recovery of outstanding dues.

Rajradhe Finance Limited acquired the debt from Bank of India via a deed of assignment dated 27.10.2020.

The Corporate Debtor acknowledged its debt in letters dated 05.04.2021 and 07.04.2023.

The respondent admitted the outstanding dues of Rs. 38,35,55,949.14/- and had no objection if the matter is admitted for CIRP against itself.

The applicant has proposed the name of Mr. Vikash Gautamchand Jain as Interim Resolution Professional.

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Corporate Debtor defaulted in repayment of its debt, and the Financial Creditor has

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**Interpretation:** The Adjudicating Authority interpreted Section 7 to allow for the initiation of

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**Application:** The Adjudicating Authority applied Section 7 and admitted the application for

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Rajradhe Finance…
- **Respondents:** Decolight…
- **Other parties:** Vikash Gautamchand…
- **Advocates:** Jaimin…; D H Rat…

## Timeline

- **2013-06-30 — Default…**: Corporate Debtor defaulted in making…
- **2013-09-30 — NPA Classif…**: Account of Corporate Debtor…

## 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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