# Mangaldas Finance Sole Proprietorship of Asit Surendrabha Shah vs. Ramos Ceramic Private Limited

> NCLT judgment dated 2026-07-15. Citation: TCN-2026-NCLT-00667. Mangaldas Finance, a registered money lender, filed an application under Section 7 of the IBC…

- **Court:** NCLT
- **Order date:** 15 Jul 2026
- **Citation:** TCN-2026-NCLT-00667
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/mangaldas-finance-sole-proprietorship-of-asit-surendrabha-shah-vs-ramos-ceramic-lptd5

## Summary

### Background

Mangaldas Finance, a registered money lender, filed an application under Section 7 of the IBC against Ramos Ceramic Private Limited (Corporate Debtor) for a default of Rs. 9.56 Crores. The loan was provided to Milano Papers Private Limited (Principal Borrower) to repay its Yes Bank loan, with Ramos Ceramic Private Limited acting as a Corporate Guarantor. The Applicant claimed to be a financial creditor, relying on a sanction letter and a guarantee deed. The Corporate Debtor contested the application, arguing non-compliance with IBC rules, incorrect default date, novation of contract, and the Applicant's ineligibility as a financial creditor under the IBC due to its status as a money lender governed by the Gujarat Money Lenders Act, 2011.

## Facts

An application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mangaldas Finance, a Sole Proprietorship of Asit Surendrabhai Shah (Financial Creditor), against Ramos Ceramic Private Limited (Corporate Debtor).

The application sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for a default amount of Rs. 9,56,94,059/-, comprising Rs. 9,33,01,452/- as principal and Rs. 23,92,607/- as interest.

The stated date of default was 16.12.2025.

Milano Papers Private Limited (Principal Borrower) approached the Financial Creditor in October 2024 for financial assistance to take over an outstanding loan owed to Yes Bank Limited.

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the IBC, 2016 by Mangaldas Finance (Financial …

**Ratio:** An application under Section 7 of the IBC is not maintainable if the applicant, being a

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**Reasoning:** The Tribunal observed that the Applicant, though registered under the Gujarat Money

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**Interpretation:** The NCLT strictly interprets the definitions of 'financial creditor' and

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**Application:** The NCLT applied these interpretations to find that the Applicant, despite

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Mangaldas Finance…
- **Respondents:** Ramos Ceramic…
- **Other parties:** Malhar Rashmikant…
- **Advocates:** Jaimin…; Tirth N…

## Timeline

- **2024-10-03 — Loan Sanction and…**: Financial Creditor sanctioned four Term Loans aggregating Rs. 16,70,00,000/- to Principal…
- **2024-10-04 — Further Loan Disbursemen…**: Applicant disbursed Rs. 4,00,00,000/-, Rs. 3,65,00,000/-, and Rs. 1,05,00,000/- to Yes…

## 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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