# In the matter of JBS ENTERPRISES LIMITED

> NCLT judgment dated 2026-02-18. Citation: TCN-2026-NCLT-00165. The case involves a joint petition filed by two financial creditors, Insta Capital Private…

- **Court:** NCLT
- **Order date:** 18 Feb 2026
- **Citation:** TCN-2026-NCLT-00165
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/jbs-enterprises-limited-bce94426

## Summary

### Background

The case involves a joint petition filed by two financial creditors, Insta Capital Private Limited and Richbond Capital Private Limited, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s JBS Enterprises Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

Insta Capital Private Limited and Richbond Capital Private Limited jointly filed a petition under Section 7 of the IBC against M/s JBS Enterprises Limited.

Insta Capital Private Limited sanctioned a loan of Rs. 96,00,000/- to the Corporate Debtor, and Richbond Capital Private Limited sanctioned a term loan of Rs. 1,80,00,000/-.

The Corporate Debtor defaulted on the repayment of the loans, leading to the issuance of legal notices cum loan recall notices by the Financial Creditors.

The total outstanding claim by the two petitioners is Rs. 2,44,61,838/-.

The Corporate Debtor raised objections regarding the authenticity of documents, compliance with Section 180 of the Companies Act, and insufficient stamp duty.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial …

**Ratio:** The application is maintainable if there is a financial debt and a default exceeding Rs.

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**Reasoning:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Interpretation:** The Adjudicating Authority must be satisfied that a default has occurred based

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**Application:** The Adjudicating Authority found that the Financial Creditors had established

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Insta Capital…; Richbond Capital…
- **Respondents:** M/s JBS Enterprise…
- **Other parties:** Rajeev Man…
- **Advocates:** Narpat…; Prachi Wa…; +2 more

## Timeline

- **2024-01-23 — Loan Appli…**: Corporate Debtor approached Financial Creditor no. 1 vide loan Application dated…
- **2024-01-25 — Sanction…**: Petitioner no. 1 granted working capital loan of Rs. 96,00,000/- vide Sanction Letter…

## 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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