# In the matter of ABUTANI MERCANTILE PRIVATE LIMITED

> NCLT judgment dated 2025-12-04. Citation: TCN-2025-NCLT-01783. 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-01783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/abutani-mercantile-private-limited-3bcc4908

## 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 and Corporate Debtor entered into a Facility Agreement dated 21.01.2023.

The Financial Creditor sanctioned Rs. 3,00,00,000/- into three separate accounts.

The Corporate Debtor agreed to repay the amounts in one bullet repayment on the 91st day after drawdown.

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

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

The Financial Creditor issued a notice of default on 06.09.2023.

The Corporate Debtor admitted liability and requested three months' time on 26.10.2023.

The Corporate Debtor made a part payment of Rs. 22,00,000/- on 22.11.2023.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established 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 is a primary requirement for

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**Application:** The NCLT determined that the Financial Creditor clearly established the

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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

- **2023-01-21 — Facility Ag…**: Financial Creditor and Corporate Debtor…
- **2023-08-05 — NPA Classif…**: Loan accounts classified as…

## 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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