NCLT Mumbai Admits CIRP Against Sunstar Realty Development Limited Despite Absence of NeSL Form D
Overview of the Case
In a significant ruling, the National Company Law Tribunal (NCLT), Mumbai Bench, admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Jeevan Jyoti Vanijya Limited against Sunstar Realty Development Limited, initiating the Corporate Insolvency Resolution Process (CIRP). The case, bearing reference C.P. (IB) 769/MB/2025, carries notable implications for financial creditors who may encounter technical difficulties in obtaining the NeSL Form D, as the Tribunal affirmed that such a form is not an absolute prerequisite where sufficient documentary evidence independently establishes financial debt and default.
Background and Factual Matrix
Jeevan Jyoti Vanijya Limited, a Non-Banking Financial Company (NBFC) acting as the Financial Creditor, extended an Inter Corporate Deposit of Rs. 3,00,00,000/- (Rupees Three Crores) to Sunstar Realty Development Limited (the Corporate Debtor), carrying an interest rate of 9% per annum payable at monthly rests.
Disbursement Details
The loan was released across three separate tranches:
- Tranche 1: Rs. 1,00,00,000/- disbursed on 22/11/2024
- Tranche 2: Rs. 1,00,00,000/- disbursed on 25/11/2024
- Tranche 3: Rs. 1,00,00,000/- disbursed on 27/11/2024
The underlying loan agreement between the parties was executed on 27/11/2024, with Schedule I specifying a loan tenure of 60 days and an interest rate of 9% per annum.
Nature of Default
The Corporate Debtor failed to honour its repayment obligations upon the expiry of the stipulated loan tenure. The date of default was recorded as 27/01/2025, being the immediate next date following the expiry of the last scheduled repayment date.
As of 31/05/2025, the total outstanding dues stood at:
| Component | Amount |
|---|---|
| Principal Outstanding | Rs. 3,00,00,000/- |
| Interest Outstanding (at 9% p.a. up to 31/03/2025) | Rs. 9,34,520/- |
| Total Outstanding | Rs. 3,09,34,520/- |
Note: The Financial Creditor did not hold any security interest over the assets of the Corporate Debtor and had not registered any charge with the Ministry of Corporate Affairs (MCA).
Documentary Evidence Placed on Record
The Financial Creditor supported its petition with the following documentary evidence:
- Copy of the bank statement of the Financial Creditor reflecting loan disbursements
- Reminder dated 30/01/2025 addressed to the Corporate Debtor
- Letter dated 05/02/2025 from the Corporate Debtor requesting extension of the credit period until 31/03/2025
- Follow-up reminder email dated 05/04/2025
- Legal Demand Notice via email dated 02/05/2025, granting the Corporate Debtor a final window of 15 days for payment
- Ledger account of the Corporate Debtor maintained in the books of the Financial Creditor
- Account confirmation dated 01/04/2025 provided by the Corporate Debtor to the Financial Creditor
- Loan agreement dated 27/11/2024
Conduct of the Corporate Debtor
Following issuance of notice by the Tribunal vide order dated 08.08.2025, service was effected upon the Corporate Debtor via email on 30.08.2025. During the hearing held on 01.09.2025, counsel for the Corporate Debtor appeared and confirmed receipt of the application. However, no further representation was made and no reply was ever filed on behalf of the respondent.
The Tribunal, consequently, closed the Corporate Debtor's right to file a reply vide order dated 14.10.2025.
The NeSL Form D Issue: A Critical Legal Question
Direction by the Tribunal
Vide order dated 5.01.2026, the Tribunal directed the Financial Creditor to produce Form D issued by NeSL (National e-Governance Services Limited).