# M K Nazar vs. Indiavision Satellite Communications Limited

> NCLT judgment dated 2026-09-24. Citation: TCN-2026-NCLT-01068. M K Nazar, the Financial Creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Sept 2026
- **Citation:** TCN-2026-NCLT-01068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/m-k-nazar-vs-indiavision-satellite-communications-limited-pyn3x

## Summary

### Background

M K Nazar, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Indiavision Satellite Communications Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claimed a default of Rs. 1,88,40,329/-. The Corporate Debtor had approached M K Nazar for financial assistance to clear its outstanding statutory liabilities. A sum of Rs. 1,50,00,000/- was remitted directly to the Service Tax Department on behalf of the Corporate Debtor. A Promissory Note dated 23.03.2015 and a Memorandum of Agreement dated 18.12.2015 were executed, with the latter extending the repayment period to 10 years. The claimed date of default was 19.12.2025, upon the expiry of

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## Facts

M K Nazar (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against Indiavision Satellite Communications Limited (Corporate Debtor).

The petition sought initiation of Corporate Insolvency Resolution Process (CIRP), declaration of moratorium, and appointment of Interim Resolution Professional (IRP).

M K Nazar is a businessman and Managing Director of Lexus Auto Corporation.

The Corporate Debtor, incorporated on 17.05.2000, was engaged in transport, storage, and communications.

The Corporate Debtor incurred substantial liabilities towards the Service Tax Department and faced financial difficulties.

A Director of the Corporate Debtor approached M K Nazar for financial assistance to discharge statutory liabilities.

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## Issues and analysis

### Issue 1: Whether the alleged financial accommodation constitutes a "financial debt" within the …

**Ratio:** A transaction must clearly establish the existence of a financial debt as defined under

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**Reasoning:** The Adjudicating Authority found that the material on record was insufficient to

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**Interpretation:** The definition of "financial debt" requires a clear and substantiated

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**Application:** The discrepancies in financial statements, lack of bank statements from the

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## Parties

- **Judges:** Vinay…; SHRI. RAVICHANDRAN…
- **Appellants:** M K N…
- **Respondents:** Indiavision…
- **Other parties:** Jamaludheen…; Jasin…
- **Advocates:** Harikumar.…

## Timeline

- **2015-03-16 — Initial P…**: First tranche of payment made by the Financial Creditor to the Tax Department on behalf…
- **2015-03-19 — Initial P…**: Second tranche of payment made by the Financial Creditor to the Tax Department on behalf…

## 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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