# Mangaldas Finance Sole Proprietorship of Asit Surendrabhha Shah vs. Milano Papers Private Limited

> NCLT judgment dated 2026-07-15. Citation: TCN-2026-NCLT-00766. Mangaldas Finance, a sole proprietorship and registered money lender, filed an application…

- **Court:** NCLT
- **Order date:** 15 Jul 2026
- **Citation:** TCN-2026-NCLT-00766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/mangaldas-finance-sole-proprietorship-of-asit-surendrabhha-shah-vs-milano-papers-64fad

## Summary

### Background

Mangaldas Finance, a sole proprietorship and registered money lender, filed an application under Section 7 of the IBC against Milano Papers Private Limited (Corporate Debtor) for a default of Rs. 9,56,94,059/-. The loan was provided to enable the Corporate Debtor to repay an existing loan with Yes Bank Limited, secured by a mortgage. The Corporate Debtor ceased repayments from 07.11.2025, leading to a demand notice from Mangaldas Finance, which the Corporate Debtor acknowledged but expressed inability to repay.

## Facts

An application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The applicant is Mangaldas Finance, Sole Proprietorship of Asit Surendrabhai Shah, referred to as "Financial Creditor".

The respondent is Milano Papers Private Limited, referred to as "Corporate Debtor".

The application sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

The alleged default amount is Rs. 9,56,94,059/-, with Rs. 9,33,01,452/- as principal and Rs. 23,92,607/- as interest.

The date of default is stated as 07.11.2025.

The Corporate Debtor 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 applicant, Mangaldas Finance, qualifies as a "financial creditor" and the …

**Ratio:** The loan granted by the applicant, a registered money lender, to enable the Corporate

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**Reasoning:** The Tribunal observed that a repayment arranged to enable the Corporate Debtor to repay

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**Interpretation:** The definitions of "financial creditor" and "financial

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**Application:** In this case, Mangaldas Finance's transaction, despite being a loan, was

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## Parties

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

## Timeline

- **2024-10 — Approach for Financial…**: Corporate Debtor approached Financial…
- **2024-10-03 — Loan Sanction and First…**: Financial Creditor sanctioned 4 term loans aggregating to Rs. 16,70,00,000/- and…

## 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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