# In the matter of Jag Bros Consultants Pvt. Ltd.

> NCLT judgment dated 2025-05-06. Citation: TCN-2025-NCLT-00110. The case involves a Company Petition IB 362 (ND) 2024 filed under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 6 May 2025
- **Citation:** TCN-2025-NCLT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jag-bros-consultants-pvt-ltd-adfb0f77

## Summary

### Background

The case involves a Company Petition IB 362 (ND) 2024 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Three financial creditors, Gap Investments PTE Ltd, Ajoy Khandheria, and Dharminder Singh Sandhu, jointly filed the application against Jag Bros Consultants Private Limited, the corporate debtor. The financial creditors claimed a default on loans provided to the corporate debtor based on separate Memoranda of Understanding (MOUs).

## Facts

Gap Investments PTE Ltd, Ajoy Khandheria, and Dharminder Singh Sandhu, filed a joint application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Jag Bros Consultants Private Limited, the corporate debtor. The financial creditors claimed a total default of Rs. 1,04,27,908/- based on three separate Memoranda of Understanding (MOUs). Gap Investments PTE Ltd's loan amount was Rs. 51,74,920/- as per the MOU dated 29.01.2021, Ajoy Khandheria's loan amount was Rs. 15,00,000/- as per the MOU dated 24.05.2022, and Dharminder Singh Sandhu's loan amount was Rs. 18,08,000/- as per the MOU dated 07.12.2020. The corporate debtor argued that the amounts were investments, not loans, and that the MOUs were fabricated. The board resolution for the MOU dated

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## Issues and analysis

### Issue 1: Whether the Applicants qualify as “Financial Creditors” within the meaning of Section 5(7) read …

**Ratio:** The ratio is based on the interpretation of Section 5(7) and 5(8) of the Insolvency and

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**Reasoning:** The Adjudicating Authority reasoned that the MOU dated 07.12.2020 was questionable

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**Interpretation:** The interpretation involves examining the validity of the MOUs and whether they

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**Application:** The Adjudicating Authority applied the ratio by scrutinizing the MOUs and the

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** GAP INVESTMENTS…
- **Respondents:** JAG BROS CONSULTAN…
- **Advocates:** Saumya C…; Sahil G…

## Timeline

- **2021-01-29 — MOU between Financial Creditor No.1 and…**: MOU executed between Financial Creditor No.1 and the Corporate Debtor for a loan amount…
- **2022-05-24 — MOU between Financial Creditor No.2 and…**: MOU executed between Financial Creditor No.2 and the Corporate Debtor for a loan amount…

## 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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