# In the matter of SRGP Corporation Limited

> NCLT judgment dated 2025-07-30. Citation: TCN-2025-NCLT-01175. Ayodhya Finlease Limited, a non-banking financial company, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 30 Jul 2025
- **Citation:** TCN-2025-NCLT-01175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/srgp-corporation-limited-4b1ca29c

## Summary

### Background

Ayodhya Finlease Limited, a non-banking financial company, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against SRGP Corporation Limited, alleging default on a financial debt of Rs. 1,93,00,000/-.

## Facts

Ayodhya Finlease Limited (Financial Creditor) extended an unsecured loan of Rs. 1,99,00,000/- to SRGP Corporation Limited (Corporate Debtor) in 2017-18.

The Corporate Debtor failed to repay the loan, leading to a Settlement Agreement dated 14.03.2022.

As per the Settlement Agreement, the Corporate Debtor was to repay Rs. 2,00,00,000/- along with interest, issuing 36 post-dated cheques.

35 out of 36 cheques were dishonored with the remark 'Stop Payment by Party'.

The Financial Creditor issued legal notices to the Corporate Debtor demanding payment, but no further payments were made.

The date of default was determined to be 04.03.2023.

The Financial Creditor filed an application under Section 7 of the IBC on 05.06.2023.

…

## Issues and analysis

### Issue 1: Whether there is a debt and default …

**Ratio:** The existence of a debt and default is a prerequisite for the admission of an application

…

**Reasoning:** The Tribunal found that the Financial Creditor had disbursed an unsecured loan to the

…

**Interpretation:** The Tribunal interpreted the Settlement Agreement and the dishonored cheques as

…

**Application:** The Tribunal applied the provisions of Section 7 of the IBC and concluded that

…

## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Ayodhya Finlease…
- **Respondents:** SRGP Corporation…
- **Other parties:** Manish…
- **Advocates:** Himanshu…; Ankita Sh…; +3 more

## Timeline

- **2017-2018 — Loan Disbur…**: Ayodhya Finlease Limited disbursed an unsecured loan of Rs. 1,99,00,000/- to SRGP…
- **2022-03-14 — Settlement Ag…**: The parties entered into a Settlement…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-allahabad/srgp-corporation-limited-4b1ca29c