NCLT Allahabad admits Sybly Industries into insolvency on NBFC lender's plea

The National Company Law Tribunal's Allahabad bench at Prayagraj on 27 October 2026 admitted Sybly Industries Limited, a company based in Muradnagar, Ghaziabad, into the corporate insolvency resolution process. It acted on a petition by Sital Leasing and Finance Limited, a non-banking finance company, which claimed Rs 1,63,49,258 in default on a loan.

What Happened

According to the order, Sybly Industries asked for a loan of Rs 2 crore in September 2024, and the lender sanctioned an unsecured term loan of Rs 1.5 crore at 12% a year, repayable in 12 monthly instalments. The money was disbursed on 26 September 2024. Apart from an interest payment of Rs 22,192 on 3 October 2024, the lender said, the company missed the first three instalments, due from 26 October to 26 December 2024.

The lender recalled the loan on 15 January 2025, demanding Rs 1,54,74,904. The two sides then signed a settlement agreement on 20 February 2025, under which the company undertook to pay that sum in one go by 20 June 2025. No payment came, and the lender treated the settlement as ended.

Sybly Industries opposed the petition. It said the petition was a recovery attempt, that it needed more time because money owed to it by customers was delayed, and that it had signed the settlement under coercion on the promise of a longer restructuring. The tribunal found that a financial debt and a default were established and that the petition was within time, and admitted it. It appointed an interim resolution professional and declared a moratorium. The matter is next listed on 1 December 2026.

What It Means

Admission into insolvency is not a finding of fraud or mismanagement. During the moratorium, suits, recovery actions and enforcement of security against the company are on hold, and its board is suspended, with management passing to the interim resolution professional. That professional must make a public announcement calling for claims; creditors, employees and suppliers should file within the time it sets. The order may be appealed to the National Company Law Appellate Tribunal.

Source: NCLT order