# Hinduja Leyland Finance Limited vs. Owais Metal & Mineral Processing Limited

> NCLT judgment dated 2026-08-13. Citation: TCN-2026-NCLT-00839. Hinduja Leyland Finance Limited (Financial Creditor) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 13 Aug 2026
- **Citation:** TCN-2026-NCLT-00839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/hinduja-leyland-finance-limited-vs-owais-metal-mineral-processing-limited-bk2rj

## 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 Owais Metal & Mineral Processing Limited (Corporate Debtor) for the initiation of Corporate Insolvency Resolution Process (CIRP). The Financial Creditor alleged a financial debt and default aggregating Rs. 1,17,28,79,394.89/- arising from eight interconnected credit facilities. The Corporate Debtor disputed the exact amount of default, the date of default, and the completeness of the application due to the absence of an Information Utility record. Furthermore, the Corporate Debtor sought to keep the proceedings in abeyance, citing a pending Writ Petition before the Rajasthan High Court concerning a mining block

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## Facts

Hinduja Leyland Finance Limited (Financial Creditor/Petitioner) filed an application under Section 7 of the IBC against M/s Owais Metal & Mineral Processing Limited (Corporate Debtor).

The application seeks initiation of CIRP for a financial debt and default aggregating Rs. 1,17,28,79,394.89/-.

The debt arose from eight interconnected credit facilities sanctioned and disbursed by the Petitioner in 2024 to the Corporate Debtor and other members of a common borrowing group.

Mr. Harsh Kumar, Regional Legal Manager of the Petitioner, is authorized to file the application via an Authority Letter dated 07.11.2025.

Mr. Rajesh Lohia (IBBI Registration No. IBBI/IPA-002/IP-N00049/2016-17/10093) was proposed as the Interim Resolution Professional (IRP).

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## Issues and analysis

### Issue 1: Whether a financial debt is owed by the Corporate Debtor to the Petitioner, and whether default has …

**Ratio:** The existence of financial debt and default is established by loan agreements, sanction

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**Reasoning:** The Corporate Debtor's reply admits the execution of the facility, receipt of funds, and

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the

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**Application:** The NCLT found that the Corporate Debtor's admission of receiving Rs. 15 crore,

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## Parties

- **Judges:** Brajendra Mani…; Man Mohan Gupta,…
- **Appellants:** Hinduja Leyland…
- **Respondents:** M/s Owais Metal &…
- **Other parties:** Sayyad/Saiyyed…; Rajesh…; +1 more
- **Advocates:** Shashwat…; Paritosh…; +2 more

## Timeline

- **2024-07-03 — Sanction Lette…**: A Sanction Letter was issued, which the Corporate Debtor pleaded was intrinsically linked…
- **2024-08-05 — Loan Disbursem…**: Multiple loan amounts were disbursed by the Financial Creditor to the 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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