# In the matter of SHARNARTHI FINANCE LIMITED

> NCLT judgment dated 2025-09-25. Citation: TCN-2025-NCLT-01442. Urmila Goyal, the Financial Creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 25 Sept 2025
- **Citation:** TCN-2025-NCLT-01442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharnarthi-finance-limited-70be6c4e

## Summary

### Background

Urmila Goyal, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sharnarthi Finance Limited, the Corporate Debtor, due to a default amount of Rs. 6,78,79,674/-.

## Facts

Urmila Goyal (Financial Creditor) filed an application under Section 7 of the IBC against Sharnarthi Finance Limited (Corporate Debtor) for a default of Rs. 6,78,79,674/-.

The Corporate Debtor received Rs. 3,75,00,000/- from the Financial Creditor and Rs. 30,00,000/- from the Financial Creditor's son, Dhruv Goel.

The Corporate Debtor acknowledged the loan and interest in its 'Confirmation of Account' for the financial years 2015-16 and 2016-17.

The Corporate Debtor stopped booking interest on the outstanding principal from 01.04.2017.

The Financial Creditor issued a demand notice on 13.11.2019, seeking repayment of Rs. 6,78,79,674/-.

The Corporate Debtor opposed the application, citing the absence of a loan agreement and inter se transactions.

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## Issues and analysis

### Issue 1: Whether the absence of a formal loan …

**Ratio:** A loan agreement or a financial contract is not a prerequisite for establishing financial

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**Reasoning:** The Hon'ble National Company Law Appellate Tribunal in Narendra Kumar Agarwal v.

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**Interpretation:** The existence of financial debt can be established through other documents such

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**Application:** In this case, the NCLT relied on various documents to establish the existence

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## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Urmila…
- **Respondents:** Sharnarthi…
- **Other parties:** Harish Ma…
- **Advocates:** Rohan M…; Rishi…

## Timeline

- **2016-02-20 — Loan Disbur…**: HDFC Bank disbursed Rs.…
- **2016-04-12 — Loan Disbur…**: SBI, PBB, Hauz Khas Branch disbursed Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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