# Advantagesai Projects Private Limited vs. Akshay Techforge Private Limited

> NCLT judgment dated 2026-06-22. Citation: TCN-2026-NCLT-00589. Advantagesai Projects Private Limited (Financial Creditor) initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 22 Jun 2026
- **Citation:** TCN-2026-NCLT-00589
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/advantagesai-projects-private-limited-vs-akshay-techforge-private-limited-1wzn3

## Summary

### Background

Advantagesai Projects Private Limited (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against Akshay Techforge Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), citing a default in repayment of financial assistance. The National Company Law Tribunal (NCLT) initially dismissed the petition, ruling that the transaction was an 'Agreement to Sale' and did not constitute a 'financial debt'. This dismissal was subsequently challenged before the National Company Law Appellate Tribunal (NCLAT).

## Facts

Advantagesai Projects Private Limited (Financial Creditor) filed Company Petition No. 1049/2021 under Section 7 of the IBC against Akshay Techforge Private Limited (Corporate Debtor).

The petition sought to initiate Corporate Insolvency Resolution Process (CIRP) due to default in repayment of financial assistance.

IA No. 3642/2025 was filed by the Applicant (Financial Creditor) for interim relief to restrain the Corporate Debtor from alienating, encumbering, or creating third-party interests on its assets.

The Financial Creditor disbursed Rs. 1,48,40,466/- to the Corporate Debtor as financial assistance.

An interest rate of 18% per annum was payable as per the Memorandum of Understanding dated 09.04.2020.

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## Issues and analysis

### Issue 1: Whether the transaction between Advantagesai Projects Private Limited (Financial Creditor) and …

**Ratio:** The NCLAT held that the real intention of the parties was the advancement of financial

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**Reasoning:** The NCLAT observed that the Corporate Debtor repeatedly acknowledged receipt of loans and

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**Interpretation:** The NCLAT interpreted the agreements and surrounding circumstances to ascertain

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**Application:** The NCLAT's findings, which are binding on the NCLT, establish that the funds

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## Parties

- **Judges:** ANIL RAJ C…; K. R. SAJI…
- **Appellants:** Advantagesai…
- **Respondents:** Akshay Techforge…
- **Other parties:** Swapnil Mukund…
- **Advocates:** Harsh Kes…; Rahul G…; +1 more

## Timeline

- **2018-11-12 — Financial Assistance…**: Financial Creditor advanced various sums aggregating to Rs. 48,36,540/- to the Corporate…
- **2019-04-09 — First Agreemen…**: Parties entered into an Agreement to Sale, acknowledging prior disbursal and agreeing to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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