# Israr vs. JMV Ispat Private Limited

> NCLT judgment dated 2026-05-22. Citation: TCN-2026-NCLT-00548. Mr. Israr, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 22 May 2026
- **Citation:** TCN-2026-NCLT-00548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/israr-vs-jmv-ispat-private-limited-u9j5h

## Summary

### Background

Mr. Israr, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s JMV Ispat Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition alleged a default in the repayment of a financial debt amounting to Rs. 5,84,46,000, along with applicable interest. The financial assistance was extended through a Loan Agreement dated 15.11.2022, under which Rs. 6,00,00,000 was disbursed. A sum of Rs. 18,00,000 was repaid on 31.12.2022. The loan's tenure was 24 months, with repayment due after 15.11.2024. Despite the expiry of the tenure, the Corporate Debtor failed to repay. A Loan Recall Notice was issued on 27.01.2025, and the default was

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## Facts

Mr. Israr, the Financial Creditor, filed a Company Petition under Section 7 of the IBC, 2016, against M/s JMV Ispat Private Limited, the Corporate Debtor.

The petition seeks initiation of CIRP due to an alleged default in repayment of financial debt amounting to Rs. 5,84,46,000.

Financial assistance was extended to the Corporate Debtor under a Loan Agreement dated 15.11.2022.

A total sum of Rs. 6,00,00,000 was disbursed to the Corporate Debtor.

Rs. 18,00,000 was repaid by the Corporate Debtor on 31.12.2022, leaving an outstanding amount of Rs. 5,84,46,000.

The loan tenure was 24 months, with repayment of the principal and interest due after 15.11.2024.

The Corporate Debtor failed to repay the outstanding loan amount despite the expiry of the agreed tenure.

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## Issues and analysis

### Issue 1: Whether there exists a financial debt and a …

**Ratio:** A financial debt is owed by the Corporate Debtor and default has occurred in repayment

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**Reasoning:** The amount advanced by the Financial Creditor is reflected as a loan payable in the bank

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**Interpretation:** Section 7 of the IBC allows for the initiation of CIRP when a financial debt is

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**Application:** In the present case, the Corporate Debtor's failure to repay the loan after the

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## Parties

- **Judges:** Sh. Ashok Kumar…; Reena Sinh…
- **Appellants:** Isra…
- **Respondents:** JMV Ispat Private…
- **Other parties:** Hemi G…
- **Advocates:** PCMA Mukesh Singh…; Adv Divya…

## Timeline

- **2022-11-15 — Loan Agreeme…**: Financial assistance was extended to the…
- **2022-12-31 — Partial Rep…**: A sum of Rs. 18,00,000 was…

## 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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