# M/s Morgan Securities and Credits Private Limited vs. BPL Limited

> NCLT judgment dated 2026-07-07. Citation: TCN-2026-NCLT-00698. M/s. Morgan Securities & Credits Private Limited (Financial Creditor) filed a Section 7 IBC…

- **Court:** NCLT
- **Order date:** 7 Jul 2026
- **Citation:** TCN-2026-NCLT-00698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/ms-morgan-securities-and-credits-private-limited-vs-bpl-limited-95x1d

## Summary

### Background

M/s. Morgan Securities & Credits Private Limited (Financial Creditor) filed a Section 7 IBC petition against BPL Limited (Corporate Debtor) seeking initiation of the Corporate Insolvency Resolution Process (CIRP) for a financial debt of Rs. 13,23,70,00,924/-. The debt originated from bill discounting facilities provided in 2002-2003, with a default date of 14.06.2007. The Financial Creditor had previously invoked arbitration, which resulted in an award in its favor on 14.12.2016. This award was subsequently challenged by the Corporate Debtor up to the Supreme Court, which ultimately affirmed the award on 04.12.2025. The Financial Creditor also initiated execution proceedings and recovered substantial amounts (Rs. 168 Crores) during the appellate process.

## Facts

M/s. BPL Display Devices Limited (BDDL) supplied goods to BPL Limited (Corporate Debtor).

BDDL and BPL Limited jointly approached M/s. Morgan Securities & Credits Private Limited (MSCPL) for bill discounting facilities.

Bill Discounting Agreements were sanctioned on 27.12.2002 for Rs. 6 Crores and on 11.06.2003 for Rs. 6.5 Crores.

Funds were disbursed against Bills of Exchange, with BDDL as Drawer and BPL Limited as Drawee, making both jointly and severally liable.

In case of default, a contractual interest rate of 36% per annum with monthly rests became payable.

The Corporate Debtor acknowledged its liability via a letter dated 02.02.2007.

MSCPL issued a Demand Notice on 06.06.2007 to BPL Limited and BDDL for Rs. 25,79,91,096/-.

The date of default was 14.06.2007.

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## Issues and analysis

### Issue 1: Whether the underlying transaction constitutes a financial debt under the Code and whether the …

**Ratio:** Bill discounting arrangements, especially those on a recourse basis with joint and

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**Reasoning:** The Adjudicating Authority noted that the Bill Discounting Facility Agreements were

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**Interpretation:** The legislative intent of Section 5(8) is broad enough to encompass various

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**Application:** The Petitioner, M/s. Morgan Securities & Credits Private Limited, is a

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## Parties

- **Judges:** Shri. Vina…; SHRI. RAVICHANDRAN…
- **Appellants:** M/s. Morgan…
- **Respondents:** BPL Lim…
- **Other parties:** AAA Insolvency…
- **Advocates:** Santhosh…; Niraj Ch…; +5 more

## Timeline

- **2002-12-27 — Bill Discounting…**: Bill Discounting Facility of Rs. 6 Crores sanctioned in favour of BPL Display Devices…
- **2003-06-11 — Additional Bill…**: Additional Bill Discounting…

## 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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