# In the matter of Ashiana Fincap Private Limited

> NCLT judgment dated 2025-09-09. Citation: TCN-2025-NCLT-01383. Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Sept 2025
- **Citation:** TCN-2025-NCLT-01383
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/ashiana-fincap-private-limited-5cd5dcc1

## Summary

### Background

Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Ashiana Fincap Private Limited, alleging a default of Rs. 9,44,95,594.97.

## Facts

Kotak Mahindra Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Ashiana Fincap Private Limited.

The alleged default amount was Rs. 9,44,95,594.97 as on 20.02.2025.

Ashiana Fincap Private Limited disputed the maintainability of the application, alleging collusion between the Financial Creditor and Yes Bank.

The Corporate Debtor claimed that the mortgaged property was transferred to third parties without their consent.

Ashiana Ispat Ltd., the principal borrower, allegedly made part payments of Rs. 1,14,58,417 towards outstanding installments.

The Applicant bank had also initiated recovery proceedings before the Debts Recovery Tribunal, Chandigarh Bench.

The Sanction Letter was dated 17.05.2024.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The Adjudicating Authority's jurisdiction under Section 7 is confined to examining

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**Reasoning:** The allegations and counter-allegations regarding the sale of the mortgaged property,

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**Interpretation:** The Adjudicating Authority cannot delve into complex issues of fraud and

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**Application:** The Adjudicating Authority held that the issues raised by the Corporate Debtor

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Ashiana Fincap…
- **Other parties:** Naresh…; Puneet…; +2 more
- **Advocates:** Aman Va…; Rishi K…; +3 more

## Timeline

- **2025-02-20 — Default…**: Alleged default date for the financial…
- **2024-05-17 — Sanction Lett…**: Date of the 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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