# Hinduja Leyland Finance Limited vs. M/s SMO Ferro Alloys Private Limited

> NCLT judgment dated 2026-08-13. Citation: TCN-2026-NCLT-00838. Hinduja Leyland Finance Limited (Financial Creditor) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 13 Aug 2026
- **Citation:** TCN-2026-NCLT-00838
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/hinduja-leyland-finance-limited-vs-ms-smo-ferro-alloys-private-limited-1fxk5

## Summary

### Background

Hinduja Leyland Finance Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), against M/s SMO Ferro Alloys Private Limited (Corporate Debtor) for the initiation of the Corporate Insolvency Resolution Process (CIRP). The application alleged a financial debt default of Rs. 117,28,79,394.89/- arising from eight interconnected Loan Against Property (LAP) facilities totaling Rs. 110,00,00,000/-. The Corporate Debtor contended that the default was temporary due to the revocation of a mining block allocation by the State Government of Rajasthan, challenged its borrowing capacity without a Special Resolution under Section 180(1)(c) of the Companies Act, 2013, and raised objections regarding inconsistencies in

…

## Facts

Hinduja Leyland Finance Limited (Financial Creditor/Petitioner) filed an application under Section 7 of the IBC against M/s SMO Ferro Alloys Private Limited (Corporate Debtor).

The application seeks initiation of CIRP for a financial debt and default aggregating Rs. 117,28,79,394.89/-.

The debt arises from eight interconnected Loan Against Property (LAP) facilities aggregating Rs. 110,00,00,000/- sanctioned and disbursed by the Petitioner on 05.08.2024.

The Corporate Debtor is part of a common borrowing group, including M/s Owais Metal & Mineral Processing Limited and members of the Sayyed/Saiyyed family.

Mr. Harsh Kumar, Regional Legal Manager of the Petitioner, is authorized to file the application.

Mr. Rajesh Lohia is proposed as the Interim Resolution Professional (IRP).

…

## Issues and analysis

### Issue 1: Whether the Petitioner has established the existence of financial debt owed by the Corporate …

**Ratio:** Financial debt and default are established by contractual documents, disbursement

…

**Reasoning:** The Corporate Debtor did not dispute the existence of loan facilities or its

…

**Interpretation:** The purpose for which funds were utilized or external circumstances allegedly

…

**Application:** The loan applications, Sanction Letter, Board Resolution, Loan Agreements, RTGS

…

## Parties

- **Judges:** Brajendra Mani…; Man Mohan…
- **Appellants:** Hinduja Leyland…
- **Respondents:** M/s SMO Ferro…; M/s SMO Ferro…
- **Other parties:** Committee of…; Sayyed Owa…; +2 more
- **Advocates:** Shashwat…; Paritosh…; +2 more

## Timeline

- **2024-06 — Loan Applications…**: Loan applications were submitted by the…
- **2024-07-03 — Sanction Lette…**: A Credit Appraisal Memo was followed by a Sanction Letter dated 03.07.2024, sanctioning…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-indore/hinduja-leyland-finance-limited-vs-ms-smo-ferro-alloys-private-limited-1fxk5