# In the matter of NV Autospares Private Limited

> NCLT judgment dated 2025-08-25. Citation: TCN-2025-NCLT-01278. This case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLT-01278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/nv-autospares-private-limited-cba97b92

## Summary

### Background

This case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Sanjay Subhash Katira, the Financial Creditor/Applicant, for initiating Corporate Insolvency Resolution Process (CIRP) against NV Autospares Private Limited, the Corporate Debtor. The application is based on the Corporate Debtor's failure to refund share application money along with interest, as directed by the Regional Director (RD) and Registrar of Companies (ROC).

## Facts

Sanjay Subhash Katira filed an application under Section 7 of the IBC to initiate CIRP against NV Autospares Private Limited.

The application is based on the non-refund of share application money along with interest.

The ROC and RD had ordered NV Autospares Private Limited to refund the share application money with interest.

The amount claimed to be in default is Rs.1,20,71,271.42, including principal and interest.

The date of default is stated as 06.02.2024.

NV Autospares Private Limited filed a writ petition before the Bombay High Court challenging the RD's order.

The Bombay High Court granted an ad-interim stay only against coercive action for non-payment of penalty.

The applicant has proposed DiMax Restructuring Private Limited as the Interim Resolution Professional (IRP).

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## Issues and analysis

### Issue 1: Whether the share application money pending allotment constitutes a 'financial debt' under Section …

**Ratio:** Share Application Money in the event of non-allotment of shares, attracts interest under

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**Reasoning:** The NCLT relied on the Kushan Mitra judgment and distinguished the Murlidhar Vincom case,

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**Interpretation:** The NCLT interpreted Section 5(8) of the IBC and Section 42(6) and 42(10) of

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**Application:** The NCLT applied the above interpretation to the facts of the case, noting that

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Sanjay Subhash…
- **Respondents:** NV Autospares…
- **Other parties:** Kailas Laxman…; Alka Kailas…; +1 more
- **Advocates:** Tarun A…; Nausher…; +1 more

## Timeline

- **2025-08-25 — Order Da…**: Order sheet of hearing…
- **2025-08-25 — Pronounc…**: Pronounced on:…

## 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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