# IL&FS Financial Services Limited vs. Adhunik Meghalaya Steels Private Limited

> NCLT judgment dated 2026-07-21. Citation: TCN-2026-NCLT-00635. IL&FS Financial Services Limited (Financial Creditor) filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 21 Jul 2026
- **Citation:** TCN-2026-NCLT-00635
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/ilfs-financial-services-limited-vs-adhunik-meghalaya-steels-private-limited-6f8hj

## Summary

### Background

IL&FS Financial Services Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Adhunik Meghalaya Steels Private Limited (Corporate Debtor). The petition sought to recover an unresolved financial debt of Rs. 55,45,97,395/- as of 15.11.2023, arising from a Term Loan Facility extended in 2015. The Corporate Debtor had defaulted on repayments, leading to its account being declared a Non-Performing Asset (NPA) on 01.03.2018. The Corporate Debtor raised objections regarding the petition being time-barred and questioned the Financial Creditor's conduct in invoking pledged securities.

## Facts

IL&FS Financial Services Limited (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, to initiate CIRP against Adhunik Meghalaya Steels Private Limited (Corporate Debtor).

The unresolved financial debt claimed was Rs. 55,45,97,395/- as on 15.11.2023.

The Corporate Debtor was incorporated on 14.11.2000 under the Companies Act 1956.

The Financial Creditor extended a Term Loan Facility of up to Rs. 30,00,00,000/- to the Corporate Debtor via a Loan Agreement dated 27.02.2015.

An amount of Rs. 24,44,44,456/- was disbursed to the Corporate Debtor on 17.03.2015.

The Corporate Debtor failed to repay the quarterly installments as per the terms of the Facility Documents.

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## Issues and analysis

### Issue 1: Whether there exists a Financial Debt within …

**Ratio:** A financial debt exists when money is disbursed against consideration for the time value

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**Reasoning:** The Financial Creditor sanctioned and disbursed a Term Loan Facility to the Corporate

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**Interpretation:** Section 5(8) of the IBC defines 'financial debt' to include money disbursed

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**Application:** The transaction between IL&FS Financial Services Limited and Adhunik

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** IL & FS Financial…
- **Respondents:** Adhunik Meghalaya…
- **Other parties:** Committee of…; Sanjay Kumar…; +1 more
- **Advocates:** Soumyajit…; Sujit Ban…; +5 more

## Timeline

- **2000-11-14 — Corporate Debtor…**: Adhunik Meghalaya Steels Private Limited (Corporate Debtor) was incorporated under the…
- **2015-02-27 — Loan Agreement and…**: Loan Agreement for a Term Loan Facility of up to Rs. 30,00,00,000/- was signed between…

## 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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