NCLT Admits Insolvency Petition Against Mumbai Company Over ₹1,376 Crore Default
Mumbai, October 30, 2026: The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Sevantilal Fakirchand and Company Pvt Ltd, initiating the Corporate Insolvency Resolution Process (CIRP) against the company over a total default of ₹1,376 crore. In its October 27 order, the NCLT held that the company’s application under Section 10 of the Insolvency…
On October 27, 2026, the Mumbai bench of the National Company Law Tribunal (NCLT) granted approval to Sevantilal Fakirchand and Company Pvt Ltd to initiate the Corporate Insolvency Resolution Process (CIRP) against the company, addressing a debt of ₹1,376 crore. The tribunal deemed the company's application in line with Section 10 of the Insolvency and Bankruptcy Code (IBC) as complete, and the default exceeding the stipulated limit.
The bulk of the company's financial obligation stemmed from corporate guarantees extended to Antrix Diamond Exports Pvt Ltd, which subsequently entered liquidation. The NCLT identified the primary liability as resulting from guarantees provided to a group of lenders, overseen by Bank of India. Upon the principal borrower's failure to repay its loans, lenders pursued recovery under the SARFAESI Act.
On July 30, 2026, Bank of India formally notified the guarantors and mortgagors, including Sevantilal Fakirchand and Company, of a remaining debt of ₹1,373.42 crore. The NCLT's order acknowledged the Board and Special Resolutions passed by the company's board on August 1 and 27, 2026, respectively, which authorized the aforementioned legal proceedings.
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