Insta Capital Private Limited and Richbond Capital Private Limited (Financial Creditors) jointly filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against Shubh Food Industries Limited (Corporate Debtor) for defaulting on financial debts totaling Rs. 1,13,65,718/-. The Corporate Debtor disputed the debt, alleging that loan documents were unstamped, terms were unilaterally filled, claims were inflated, and the Financial Creditors violated RBI's Fair Practices Code. The Corporate Debtor also claimed a right to set-off against Richbond Capital due to advances made to a related entity, Global Impex, and argued that the petition was a malicious recovery attempt and below the statutory threshold.

Insta Capital Private Limited and Richbond Capital Private Limited (Financial Creditors) jointly filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against Shubh Food Industries Limited (Corporate Debtor) for defaulting on financial debts totaling Rs. 1,13,65,718/-. The Corporate Debtor disputed the debt, alleging that loan documents were unstamped, terms were unilaterally filled, claims were inflated, and the Financial Creditors violated RBI's Fair Practices Code. The Corporate Debtor also claimed a right to set-off against Richbond Capital due to advances made to a related entity, Global Impex, and argued that the petition was a malicious recovery attempt and below the statutory threshold.