# In the matter of M/s Margdarshak Financial Services Limited

> NCLT judgment dated 2025-06-11. Citation: TCN-2025-NCLT-00725. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Jun 2025
- **Citation:** TCN-2025-NCLT-00725
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ms-margdarshak-financial-services-limited-f612263e

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by M/S Micro Units Development and Refinance Agency Limited (MUDRA) against M/S Margdarshak Financial Services Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). MUDRA, the financial creditor, claims a total financial debt of Rs. 6,15,26,697/- as of 14.11.2024, with the date of default being 10.02.2021. The application was filed on 08.12.2024. The Corporate Debtor's management had not filed financial statements with the Registrar of Companies since 31.03.2020, and the Reserve Bank of India (RBI) had issued a press release on 22.08.2024, cancelling the Corporate Debtor's certificate of registration as an NBFC.

## Facts

M/S Micro Units Development and Refinance Agency Limited (MUDRA) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/S Margdarshak Financial Services Limited, seeking initiation of CIRP. The application was filed on 08.12.2024. MUDRA claimed a financial debt of Rs. 6,15,26,697/- as of 14.11.2024, with the date of default being 10.02.2021. The Corporate Debtor had two term loans sanctioned, one for Rs. 10,00,00,000 sanctioned on 22.03.2018 and another for Rs. 7,00,00,000 sanctioned on 23.10.2019. The Corporate Debtor made payments towards installments, interest, and other charges up to 10.01.2021 for Loan Account No. 001200605000063. The Corporate Debtor failed to discharge its obligation to pay all the installments which fell due

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## Issues and analysis

### Issue 1: Whether the application is barred by Section 10A …

**Ratio:** Section 10A of the IBC bars applications for defaults occurring during the period from

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**Reasoning:** The tribunal considered the applicant's argument that the default occurred both during

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**Interpretation:** Section 10A provides a shield to corporate debtors for defaults occurring

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**Application:** The tribunal found that the subsequent default occurring on 26.06.2021 due to

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/S MICRO UNITS…
- **Respondents:** M/S MARGDARSHAK…

## Timeline

- **2021-02-10 — Date of D…**: The date of default as…
- **2021-05-11 — NPA Classif…**: Corporate Debtor was classified…

## 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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