# SBI Global Factors Ltd. vs. AKS Electricals & Electronics Pvt. Ltd.

> NCLT judgment dated 2026-07-10. Citation: TCN-2026-NCLT-00792. SBI Global Factors Ltd. (Applicant/Financial Creditor) filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 10 Jul 2026
- **Citation:** TCN-2026-NCLT-00792
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/sbi-global-factors-ltd-vs-aks-electricals-electronics-pvt-ltd-qnuny

## Summary

### Background

SBI Global Factors Ltd. (Applicant/Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against AKS Electricals & Electronics Pvt. Ltd. (Respondent/Corporate Debtor) for a default of Rs. 1,19,00,502.34/-. The Applicant provided factoring services to PSR Metals Pvt. Ltd., which assigned its trade receivables from the Corporate Debtor to the Applicant. The Corporate Debtor defaulted on payments, leading to dishonoured cheques and legal notices. The application was initially dismissed by the NCLT on 16.02.2023, citing that the factoring agreement was 'on recourse basis' and the debt should be reckoned against the assignor (PSR Metals Pvt. Ltd.), not the Corporate Debtor. The NCLAT, in an appeal, set aside this order on 07.08.2025

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## Facts

SBI Global Factors Ltd. (Applicant/Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against AKS Electricals & Electronics Pvt. Ltd. (Respondent/Corporate Debtor).

The Corporate Debtor committed a default in payment of Rs. 1,19,00,502.34/-.

The Applicant, an NBFC, provides factoring services, acting as a financer by discounting/rediscounting invoices.

The Applicant provided Domestic Factoring Facility of Rs. 3 Crores to PSR Metals Pvt. Ltd. ("PSR") since May 2019, sanctioned on 02.05.2019.

Various documents, including a Global Account Receivables Management Agreement and Deed of Assignment of receivables, were executed on 09.05.2019 by PSR Metals Pvt. Ltd. and Personal Guarantors.

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## Issues and analysis

### Issue 1: Whether the Applicant, SBI Global Factors Ltd., qualifies as a "Financial Creditor" of …

**Ratio:** A factoring arrangement where the financer disburses funds to the assignor (seller) and

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**Reasoning:** The NCLT observed that the Corporate Debtor never availed any loan, credit facility, or

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**Interpretation:** The definition of "financial debt" under Section 5(8) of the Code

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**Application:** Since the Applicant disbursed funds to PSR Metals Pvt. Ltd. and not to AKS

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; ATUL CHAT…
- **Appellants:** SBI Global…
- **Respondents:** AKS Electricals &…
- **Advocates:** Jitendra…; Ayush P…; +3 more

## Timeline

- **2019-05-02 — Sanction of Factoring…**: SBI Global Factors Ltd. sanctioned a Domestic Factoring Facility of Rs. 3 Crores to PSR…
- **2019-05-09 — Execution of A…**: Various documents, including Global Account Receivables Management Agreement and Deed of…

## 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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