# In the matter of Bhalkeshwar Sugars Limited

> NCLT judgment dated 2025-09-25. Citation: TCN-2025-NCLT-01418. The Sugar Development Fund, Government of India, through IFCI Limited, filed a petition under…

- **Court:** NCLT
- **Order date:** 25 Sept 2025
- **Citation:** TCN-2025-NCLT-01418
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/bhalkeshwar-sugars-limited-ee9b29de

## Summary

### Background

The Sugar Development Fund, Government of India, through IFCI Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bhalkeshwar Sugars Limited.

## Facts

Sugar Development Fund, Government of India, through IFCI Limited, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The Corporate Debtor, Bhalkeshwar Sugars Limited, defaulted on a payment of Rs. 2,75,81,652/-.

The Financial Creditor had sanctioned a credit facility of Rs. 6,11,80,700/- to the Corporate Debtor on 10.11.2015.

The Corporate Debtor executed a Mortgage Deed and a Hypothecation Deed dated 07.05.2016 in favor of the Financial Creditor.

The Financial Creditor issued a Formal Loan recall notice to the Corporate Debtor on 28.02.2025.

The Corporate Debtor acknowledged the debt in its financial statements for the FY ending 2021-22 and 2022-23.

…

## Issues and analysis

### Issue 1: Whether the Financial Creditor established the existence of a financial debt as defined under …

**Ratio:** Yes, the Financial Creditor presented Sanction Letters, Loan Agreements, and computation

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**Reasoning:** The documents placed on record, including the NeSL Record of Default, loan documents, and

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**Interpretation:** The Adjudicating Authority interpreted Section 5(8) to mean that the Financial

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**Application:** The Adjudicating Authority applied the definition of financial debt to the

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Sugar Development…; IFCI Li…; +2 more
- **Respondents:** Bhalkeshwar…; Bhalkeshwar Sugar…
- **Other parties:** Ritesh R. M…; Charudutt…
- **Advocates:** Rohit G…; Theert…; +2 more

## Timeline

- **2015-11-10 — Sanction of Credit…**: Financial Creditor sanctioned a credit facility of Rs. 6,11,80,700/- to the Corporate…
- **2016-05-07 — Execution o…**: Corporate Debtor executed a Mortgage Deed and a Hypothecation Deed in favor of the…

## 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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