# In the matter of ABUTANI MERCANTILE PRIVATE LIMITED

> NCLT judgment dated 2025-12-04. Citation: TCN-2025-NCLT-01784. Eduvanz Financing Private Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 4 Dec 2025
- **Citation:** TCN-2025-NCLT-01784
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/abutani-mercantile-private-limited-20bac052

## Summary

### Background

Eduvanz Financing Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Abutani Mercantile Private Limited due to an unresolved financial debt of Rs. 1,41,81,641/-.

## Facts

The Corporate Debtor is a Private Limited Company incorporated on 21.12.2000.

The Financial Creditor sanctioned Rs. 3,00,00,000/- to the Corporate Debtor through a Facility Agreement dated 21.01.2023.

The Corporate Debtor agreed to repay the disbursed amounts in one bullet repayment on the 91st day after the date of drawdown, with interest to be repaid monthly.

The loan accounts of the Corporate Debtor were classified as Non-Performing Asset (NPA) on 05.08.2023.

The Corporate Debtor defaulted on the repayment of dues amounting to Rs. 1,42,27,991/-.

The Financial Creditor issued a notice on 06.09.2023 informing the Corporate Debtor of the default.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established the existence of a financial debt and default by the …

**Ratio:** The Hon'ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank held that once a

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**Reasoning:** The NCLT found ample documentary evidence showing the disbursal of financial facilities,

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**Interpretation:** The existence of a financial debt and default was clearly established based on

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**Application:** The NCLT applied the principle established in Innoventive Industries Ltd. v.

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## Parties

- **Judges:** Rammurti Ku…
- **Appellants:** Eduvanz Financing…
- **Respondents:** Abutani Mercantile…
- **Other parties:** Arjun K…; Girish…; +1 more
- **Advocates:** Bikash S…; P. Aga…; +1 more

## Timeline

- **2000-12-21 — Incorporation of…**: Abutani Mercantile…
- **2023-01-21 — Facility Ag…**: Financial Creditor and Corporate Debtor…

## 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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