# TATA Capital Ltd vs. Luckshmi Yarn Impex Pvt Ltd

> NCLT judgment dated 2026-07-02. Citation: TCN-2026-NCLT-00710. Tata Capital Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 2 Jul 2026
- **Citation:** TCN-2026-NCLT-00710
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/tata-capital-ltd-vs-luckshmi-yarn-impex-pvt-ltd-z28w8

## Summary

### Background

Tata Capital Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Luckshmi Yarn Impex Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The petition was based on a financial debt of Rs.1,45,40,911.61/-, with the date of default stated as 10.04.2025. The Corporate Debtor had availed a term loan of Rs.1,50,00,000/- from the Petitioner, which was sanctioned on 17.05.2024 and formalized through an agreement on 24.05.2024. The loan was guaranteed by Sunil Sharma, Mangala Sharma, and Swati Sharma, and secured by a mortgage from Gopal Sharma.

## Facts

Tata Capital Limited (Petitioner/Financial Creditor) filed a petition under Section 7 of IBC, 2016, against Luckshmi Yarn Impex Private Limited (Respondent/Corporate Debtor).

The petition seeks initiation of Corporate Insolvency Resolution Process (CIRP).

Luckshmi Yarn Impex Private Limited was incorporated on 28.12.2020 with an Authorised and Paid-up Share Capital of Rs.5,00,00,000/-.

The financial debt claimed by the Petitioner is Rs.1,45,40,911.61/-.

The date of default is stated as 10.04.2025.

The petition was filed on 15.10.2025.

The Petitioner sanctioned a term loan of Rs.1,50,00,000/- to the Corporate Debtor vide sanction letter dated 17.05.2024.

A term loan agreement was entered into on 24.05.2024 between the Corporate Debtor and the Petitioner.

…

## Issues and analysis

### Issue 1: Whether the petition filed by Tata Capital Limited under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, must be admitted

…

**Reasoning:** The Tribunal found that Tata Capital Limited, as the Financial Creditor, had presented

…

**Interpretation:** Section 7 of the IBC empowers the Adjudicating Authority to admit a petition

…

**Application:** In the present case, Tata Capital Limited established the financial debt of

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Tata Capital…
- **Respondents:** Luckshmi Yarn…
- **Other parties:** Shri. P. Balasubra…
- **Advocates:** Gaurau Chat…

## Timeline

- **2020-12-28 — Incorporation of…**: Luckshmi Yarn Impex Private…
- **2023-11-17 — Execution of Master…**: The Corporate Debtor and guarantors executed master terms and conditions (Registration…

## 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-chennai/tata-capital-ltd-vs-luckshmi-yarn-impex-pvt-ltd-z28w8