# Jeevan Jyoti Vanijya Limited vs. Sunstar Realty Development Limited

> NCLT judgment dated 2026-07-10. Citation: TCN-2026-NCLT-00608. Jeevan Jyoti Vanijya Limited (Financial Creditor) filed a Section 7 IBC application against…

- **Court:** NCLT
- **Order date:** 10 Jul 2026
- **Citation:** TCN-2026-NCLT-00608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/jeevan-jyoti-vanijya-limited-vs-sunstar-realty-development-limited-gcttu

## Summary

### Background

Jeevan Jyoti Vanijya Limited (Financial Creditor) filed a Section 7 IBC application against Sunstar Realty Development Limited (Corporate Debtor) for initiating CIRP. The Financial Creditor disbursed Rs. 3 Crores as Inter Corporate Deposit at 9% p.a. in three tranches in November 2024. The Corporate Debtor defaulted on 27/01/2025, with an outstanding amount of Rs. 3,09,34,520/-. The applicant provided various documents including loan agreements, bank statements, and demand notices as proof of debt and default. Despite notice, the Corporate Debtor failed to file a reply, and their right to do so was closed. The applicant proposed Mr. Vinod Kumar Chaurasia as the Interim Resolution Professional.

## Facts

Jeevan Jyoti Vanijya Limited, a Non-Banking Financial Company, filed a Company Petition under Section 7 of the IBC, 2016, against Sunstar Realty Development Limited.

Jeevan Jyoti Vanijya Limited disbursed loans totaling Rs. 3,00,00,000/- (Rupees Three Crores Only) to Sunstar Realty Development Limited as Inter Corporate Deposit.

The loan was disbursed in three tranches on 22/11/2024, 25/11/2024, and 27/11/2024, with an agreed interest rate of 9% p.a. payable at monthly rests and a loan term of 60 days.

Sunstar Realty Development Limited defaulted in repaying the loan and interest, with the date of default being 27/01/2025.

As of 31/05/2025, the outstanding amount was Rs. 3,09,34,520/-, comprising Rs. 3,00,00,000/- principal and Rs. 9,34,520/- interest.

…

## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP …

**Ratio:** The Adjudicating Authority must ascertain the existence of a default from the records of

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**Reasoning:** The Code restricts the scope of enquiry for admission of an insolvency process by a

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**Interpretation:** Section 7(5) IBC empowers the Adjudicating Authority only to verify whether a

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**Application:** The applicant successfully demonstrated the existence of a financial debt

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Jeevan Jyoti…
- **Respondents:** Sunstar Realty…
- **Other parties:** Vinod Kumar…
- **Advocates:** Yahya Bata…; Anita P…

## Timeline

- **2024-11-22 — Loan Disbursement…**: First tranche of the loan amounting to Rs. 1,00,00,000/- was disbursed to the Corporate…
- **2024-11-25 — Loan Disbursement…**: Second tranche of the loan amounting to Rs. 1,00,00,000/- was disbursed to the Corporate…

## 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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