# In the matter of PRINCE FOUNDATIONS LIMITED

> NCLT judgment dated 2026-03-26. Citation: TCN-2026-NCLT-00266. Malco Gems, a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Mar 2026
- **Citation:** TCN-2026-NCLT-00266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prince-foundations-limited-a25e0049

## Summary

### Background

Malco Gems, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Prince Foundations Limited, the corporate debtor, due to a default of Rs. 29,32,14,975/-. The petitioner claimed to have disbursed monies to the respondent between 2020 and 2021, which the respondent acknowledged through a demand promissory note.

## Facts

Malco Gems, represented by its Sole Proprietor Mr. Jitendra Singh Rathour, filed a petition under Section 7 of IBC against Prince Foundations Limited.

The petition claims a financial debt of Rs. 29,32,14,975/- with the date of default as 14.08.2022.

The Petitioner disbursed monies to the Respondent/Corporate Debtor from time to time through regular banking channels between 14.09.2020 to 18.08.2021, amounting to Rs. 16,90,50,000/-.

The Corporate Debtor executed a Demand Promissory Note on 31.03.2022 in favour of the Petitioner acknowledging the outstanding liability.

The Petitioner issued a demand notice dated 30.07.2022, which was served on the Corporate Debtor on 03.08.2022, but the Corporate Debtor neither replied nor made any repayment.

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## Issues and analysis

### Issue 1: Whether the petition filed by a proprietary …

**Ratio:** The NCLAT in Fipola Retail (India) Private Limited held that a petition filed by a

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**Reasoning:** Section 2 of IBC allows for the petition to be maintained by a proprietary

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**Interpretation:** A proprietary concern can

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**Application:** The Tribunal relied on the NCLAT's decision in Fipola Retail to conclude that

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Malco…
- **Respondents:** Prince Foundations…; Prince Foundation…
- **Other parties:** G.S.Su…
- **Advocates:** J.Maniv…; K.K. Vijay…

## Timeline

- **2020-09-14 — Disbursement S…**: The Petitioner disbursed monies to the Corporate Debtor through regular banking channels…
- **2021-08-18 — Disbursement…**: The Petitioner disbursed monies to the Corporate Debtor through regular banking channels…

## 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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