# M/S MICRO UNITS' DEVELOPMENT AND REFINANCE AGENCY LIMITED (MUDRA) vs. M/S ADHIKAR MICROFINANCE PRIVATE LIMITED

> NCLT judgment dated 2026-10-06. Citation: TCN-2026-NCLT-01098. M/S MICRO UNITS' DEVELOPMENT AND REFINANCE AGENCY LIMITED (MUDRA), a financial creditor, filed…

- **Court:** NCLT
- **Order date:** 6 Oct 2026
- **Citation:** TCN-2026-NCLT-01098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/adhikar-microfinance-private-limited-rrplq

## Summary

### Background

M/S MICRO UNITS' DEVELOPMENT AND REFINANCE AGENCY LIMITED (MUDRA), a financial creditor, filed a Section 7 application under the IBC, 2016, to initiate CIRP against M/S ADHIKAR MICROFINANCE PRIVATE LIMITED, the corporate debtor, for an outstanding financial debt of Rs.1,68,30,860/-. The first default occurred on 10.11.2021, stemming from a Rs.4.50 Crore term loan disbursed on 13.12.2019. The Corporate Debtor contested the application, arguing it was a Financial Service Provider (NBFC whose license was cancelled), disputed the default amount, claimed it was below the statutory threshold, and asserted the application was time-barred.

## Facts

M/S MICRO UNITS' DEVELOPMENT AND REFINANCE AGENCY LIMITED (MUDRA) filed a Section 7 application under IBC, 2016, against M/S ADHIKAR MICROFINANCE PRIVATE LIMITED.

MUDRA claimed an outstanding financial debt of Rs.1,68,30,860/-, including principal overdue of Rs.1,26,82,412/- and interest overdue of Rs.41,48,448/-.

The first default, as per MUDRA, occurred on 10.11.2021.

MUDRA sanctioned a term loan of Rs.4.50 Crores to the Corporate Debtor on 04.12.2019, which was disbursed on 13.12.2019.

The Corporate Debtor's loan account was classified as Non-Performing Asset (NPA) on 08.02.2022.

MUDRA issued a Recall Notice to the Corporate Debtor on 23.08.2022.

The Corporate Debtor was registered as an NBFC with the Reserve Bank of India, engaged in microfinance lending.

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## Issues and analysis

### Issue 1: Whether the Application is maintainable against the Corporate Debtor having regard to its status as …

**Ratio:** A Corporate Debtor whose NBFC registration has been cancelled by the RBI no longer

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**Reasoning:** Section 3(17) of the Code defines a Financial Service Provider as a person engaged in

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**Interpretation:** The definition of "Financial Service Provider" under Section 3(17) of

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**Application:** Since Adhikar Microfinance Private Limited's NBFC license was cancelled by RBI

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## Parties

- **Judges:** CHEEKATI RADHA…; BANWARI LAL…
- **Appellants:** M/S MICRO UNITS'…
- **Respondents:** M/S ADHIKAR…
- **Other parties:** Efficax Resolution…
- **Advocates:** Pink…; Subhajeet…; +4 more

## Timeline

- **2019-12-04 — Loan Sanc…**: Term loan of Rs.4.50 Crores sanctioned…
- **2019-12-13 — Loan Disb…**: The sanctioned term loan of Rs.4.50 Crores…

## 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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