# J.M. Financial Asset Reconstruction Company Limited vs. Howrah Mills Company Limited & Abinandan Holdings Private Limited

> NCLT judgment dated 17.07.2026. Citation: TCN-2026-NCLT-00662. This judgment addresses a Section 7 application under the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 17.07.2026
- **Citation:** TCN-2026-NCLT-00662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/jm-financial-asset-reconstruction-company-limited-vs-howrah-mills-company-limite-kcyve

## Summary

### Background

This judgment addresses a Section 7 application under the Insolvency and Bankruptcy Code, 2016, filed by J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) against Howrah Mills Company Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The case involved multiple interim applications and appeals to the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. Key contentions included the alleged assignment of debt to Abinandan Holdings Private Limited, the impact of civil court injunctions, and the Financial Creditor's authorization. The NCLAT ultimately directed the admission of the CIRP, finding debt and default established and rejecting the debt assignment to Abinandan. The Supreme Court upheld

…

## Facts

J.M. Financial Asset Reconstruction Company Limited (Financial Creditor) filed C.P.(IB) No. 04/KB/2019 under Section 7 of the IBC, 2016, against Howrah Mills Company Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP).

The Financial Creditor claimed a financial debt of Rs. 40,38,00,000/- and an amount in default of Rs. 54,58,33,004.02 as on 15.12.2018.

The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.12.2025.

A deed of assignment of financial assets of the Corporate Debtor was executed between J.M. Financial Asset Reconstruction Company (Financial Creditor/Intending Assignor) and Abhinandan Holding (Intending Assignee) on 15.01.2020.

…

## Issues and analysis

### Issue 1: Whether the Section 7 application (C.P.(IB) No. 04/KB/2019) filed by J.M. Financial Asset …

**Ratio:** The Section 7 application is maintainable, and the Corporate Debtor is to be admitted

…

**Reasoning:** The NCLAT, in Company Appeal (AT) (Insolvency) No. 521 of 2024, set aside the

…

**Interpretation:** The NCLAT's decision, upheld by the Supreme Court, is binding and conclusively

…

**Application:** Following the binding directions of the NCLAT and the Supreme Court, the

…

## Parties

- **Judges:** Labh Singh,…; REKHA KANTILAL…
- **Respondents:** Howrah Mills…; JM Financial…; +1 more
- **Other parties:** Vinod Kumar…; GT Restructuring…; +1 more
- **Advocates:** Mainak…; Vikram Wa…; +12 more

## Timeline

- **15.12.2018**
- **2019**

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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-kolkata/jm-financial-asset-reconstruction-company-limited-vs-howrah-mills-company-limite-kcyve