# In the matter of ROYAL FANTASY CONSTRUCTIONS PRIVATE LIMITED

> NCLT judgment dated 2025-10-30. Citation: TCN-2025-NCLT-01539. Euro Corporate Services Private Limited filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Oct 2025
- **Citation:** TCN-2025-NCLT-01539
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/royal-fantasy-constructions-private-limited-15885ce0

## Summary

### Background

Euro Corporate Services Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Royal Fantasy Constructions Pvt. Ltd.

## Facts

Euro Corporate Services Private Limited (Financial Creditor) filed a petition under Section 7 of the IBC to initiate CIRP against Royal Fantasy Constructions Pvt. Ltd. (Corporate Debtor).

The total amount of default claimed is Rs. 2,02,05,153/- as of 31st July 2024, with the date of default being 13.08.2024.

The Financial Creditor and Corporate Debtor had an oral agreement for interest at 12% p.a., later reduced to 9% p.a. due to the Corporate Debtor's financial difficulties.

The Corporate Debtor offered a flat as security, but later it was found that third-party rights had already been created on the flat.

The Corporate Debtor admitted its liability by executing Confirmation of Accounts and paying TDS on interest.

…

## Issues and analysis

### Issue 1: Whether the amounts advanced by the Petitioner to the Respondent constitute a 'financial debt' …

**Ratio:** The amounts received from the Petitioner

…

**Reasoning:** The amounts were disbursed for the time value of money. Interest was regularly provided

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**Interpretation:** The said loan constitutes a financial debt

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**Application:** The Adjudicating Authority concluded that the amounts advanced were indeed a

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## Parties

- **Judges:** Prabhat…; Sushil Mahadeorao…
- **Appellants:** Euro Corporate…
- **Respondents:** Royal Fantasy…
- **Other parties:** Utkarsh A…; Raj Kuma…; +1 more
- **Advocates:** Rohan Ag…; Sabeena M…; +3 more

## Timeline

- **2010-08-09 — Share Subscription cum…**: Agreement entered into amongst Group A Shareholders, Group B Shareholders, and the…
- **2024-08-02 — Default-cum-demand…**: Financial Creditor issued a…

## 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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