M/s. Jagannath Textile Company Private Limited (Financial Creditor/Applicant) filed an application under Section 7 of the IBC against M/s. ShreeSatya Sponge & Power Private Limited (Corporate Debtor/Respondent) for initiating CIRP due to an alleged default of Rs. 1,09,56,712/-. The Financial Creditor had disbursed an unsecured loan of Rs. 1,00,00,000/- to the Corporate Debtor in July 2025, with an agreed interest rate of 12% per annum. The Corporate Debtor issued a money receipt and a post-dated cheque for repayment, which was later dishonoured. The Corporate Debtor disputed the nature of the debt, the maintainability of the application based on the pecuniary threshold, and the validity of the NeSL record.

M/s. Jagannath Textile Company Private Limited (Financial Creditor/Applicant) filed an application under Section 7 of the IBC against M/s. ShreeSatya Sponge & Power Private Limited (Corporate Debtor/Respondent) for initiating CIRP due to an alleged default of Rs. 1,09,56,712/-. The Financial Creditor had disbursed an unsecured loan of Rs. 1,00,00,000/- to the Corporate Debtor in July 2025, with an agreed interest rate of 12% per annum. The Corporate Debtor issued a money receipt and a post-dated cheque for repayment, which was later dishonoured. The Corporate Debtor disputed the nature of the debt, the maintainability of the application based on the pecuniary threshold, and the validity of the NeSL record.