NCLT admits Shital India Preservation into insolvency over Rs 1.57 crore loan default
The NCLT's Allahabad bench has admitted Firozabad-based Shital India Preservation Private Limited into insolvency on a joint petition by three lenders over unpaid loans.
Key points
- The NCLT's Allahabad bench admitted Shital India Preservation Private Limited into insolvency on 26 October 2026.
- Three individual lenders put the default at Rs 1,57,46,699, with 2 July 2025 as the date of default.
- Claims will be called through a public announcement by the interim resolution professional; the order may be appealed to the NCLAT.
The National Company Law Tribunal (NCLT), Allahabad bench, has admitted Shital India Preservation Private Limited, a company registered in Shikohabad, Firozabad district, into the corporate insolvency resolution process. The order, pronounced on 26 October 2026, came on a joint petition by three individual lenders who said the company had defaulted on loans totalling Rs 1,57,46,699.
What Happened
The lenders, financial creditors under the Insolvency and Bankruptcy Code, filed the petition on 16 July 2025. According to the order, their bank statements show transfers to the company in March 2021, and the company's audited balance sheet for the year ended 31 March 2024, signed by its directors on 7 October 2024, records the amounts as long-term borrowings from related parties.
The lenders sent a notice on 21 June 2025 asking for repayment within 10 days. No payment was made, and the record of default from the information utility, National E-Governance Services Limited, gives 2 July 2025 as the date of default.
The company did not contest the case on merits. Per the order, its counsel appeared but did not file a reply despite several opportunities, and its right to reply was struck off on 22 April 2026. The tribunal held that the petition was filed within the three-year limitation period, because the directors had acknowledged the debt in the balance sheet, and that the debt and default above the Rs 1 crore threshold were established.
What It Means
An interim resolution professional appointed by the tribunal now takes over the company's affairs and must make a public announcement immediately, calling for claims. Anyone owed money by the company should file a claim as that announcement directs. A moratorium bars suits, recovery actions and the sale of the company's assets during the process. The lenders must deposit Rs 1 lakh with the interim resolution professional for initial expenses, and the matter is listed next on 26 November 2026.
Admission into insolvency is not a finding of fraud or mismanagement. The NCLT's order may be appealed to the National Company Law Appellate Tribunal (NCLAT).
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal