Saffron Gems Private Limited vs Antique Exim Private Limited

The case is fixed for pronouncement of order. The order is pronounced in the open court, vide separate sheet.

This Company Petition registered on 24.06.2026, has been by the Applicant - Saffron Gems Private Limited (hereinafter referred to as “Financial Creditor”) against the Respondent - Antique Exim Private Limited (hereinafter referred to as “Corporate Debtor”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as “IB (AAA) Rules, 2016”) for initiation of Corporate Insolvency Resolution Process (CIRP), for having defaulted in payment of the outstanding Financial Debt of Rs. 1,48,03,562/- including interest.

On perusal of Part-I of Form-1 it is revealed that the Financial Creditor, Saffron Gems Private Limited is a company incorporated on 10.08.2009 under the provisions of the Companies Act 1956, registered with the Registrar of Companies, Gujarat, Ahmedabad, bearing CIN No. U36911GJ20 09PTC057753, with its registered office at 103, Vedant Complex, Bhojabhai Ni Sheri, Mahidharpura, Surat - 395003, Gujarat, India.

On perusal of Part-II of Form-1 it is revealed that the Corporate Debtor is Antique Exim Private Limited, a private limited company incorporated on 21.11.2011 under provisions of the Companies Act, 1956, bearing CIN No. U52393GJ2011PTC067924, having its registered office at: Office No. A-104, Shilalekh Commercial Co. Op. Society Ltd, Bhoja Bhai Ni Sheri, Mahidharpura, Surat - 395003, Gujarat, India, having an authorised share capital Rs. 10,00,000/- and paid-up share capital of Rs. 5,00,000/- , as per the Master Data of the Ministry of Corporate Affairs placed on record with the Petition as Annexure-C to the instant petition.

On perusal of Part-III of Form-1 it is revealed that the Financial Creditor has proposed the name of Mr. Varun Anil Chopra, having Registration No. IBBI/IPA-001/IP-02950/2025-26/14525, having address at C-1002, Ashirwad Avenue, VIP Road, Opp. Shyam Baba Mandir, Althan, Surat - 395007, Gujarat, India. (e-mail: ipvarunchopra@gmail.com), to act as the Interim Resolution Professional in terms of Section 16(2) of the Code, subject to the statutory requirements prescribed under the Code and the applicable Rules.

On perusal of Part-IV and Part-V of Form-1, the Financial Creditor has placed the facts through this Petition in the following manner:

The Financial Creditor, M/s. Saffron Gems Private Limited, granted a short-term business loan/ interim finance/ unsecured loan to the Corporate Debtor, M/s. Antique Exim Private Limited, for an aggregate amount of Rs.1,35,00,000/- (Rupees One Crore Thirty-Five Lakhs Only) for a period of two months at an interest rate of 2.5% per month (30% per annum). The sanction was made pursuant to a Board Resolution dated 21.07.2025 of the Petitioner/ Financial Creditor.

The Respondent/ Corporate Debtor, through its Board Resolution dated 30.07.2025, resolved to avail the said loan of Rs.1,35,00,000/- from the Financial Creditor. A Loan Agreement dated 25.07.2025 was executed between the parties, stipulating repayment within two months (60 days) from the date of last disbursement, with interest at 2.5% per month (30% per annum).

It is stated that the Financial Creditor disbursed the loan amount in six tranches during September 2025, as under:

A copy of the Bank Statement of the Financial Creditor indicating disbursement is annexed as Annexure “H”

It is stated as per the terms of the Loan Agreement dated 25.07.2025, that the Corporate Debtor was required to repay the entire loan amount along with interest on or before 03.11.2025. However, the Corporate Debtor failed to discharge its liability within the stipulated period.

It is stated in consequence, the Financial Creditor issued a Loan Recall Notice dated 05.11.2025, recalling the entire outstanding debt of Rs.1,35,16,438/- (inclusive of principal Rs.1,35,00,000/- and interest Rs.16,438/- calculated till 04.11.2025). The Corporate Debtor, vide letter dated 07.11.2025, admitted its indebtedness but sought a grace period of two months owing to liquidity crunch.

Hence, as stated, the Financial Creditor, vide its letter dated 10.11.2025, granted a one-time extension till 04.01.2026, intimating that the Corporate Debtor was liable to repay Rs.1,41,93,288/- (inclusive of interest till 04.01.2026).

The Corporate Debtor again defaulted on the extended deadline. Accordingly, the Financial Creditor issued a Final Recall Notice dated 10.01.2026, demanding repayment of Rs.1,41,93,288/- (principal Rs. 1,35,00,000/- and interest Rs.6,93,288/- calculated till 04.01.2026) within seven (07) days. The Corporate Debtor, vide letter dated 12.01.2026, sought further extension of two months, which was not expressly consented to by the Financial Creditor. The Petitioner/ Financial Creditor has placed a copy of final recall notice as Annexure “L” on record.

As the Corporate Debtor failed to repay even thereafter, the Financial Creditor, through its advocate, issued a Legal Demand Notice dated 30.03.2026, seeking repayment of Rs.1,48,03,562/- (inclusive of principal and interest calculated till 28.02.2026) along with further running interest. The said notice was duly served by e-mail and hand delivery, though the postal attempt was returned undelivered.

Despite service of the Legal Demand Notice, the Corporate Debtor neither repaid the outstanding dues nor communicated any bona fide proposal for settlement. The default thus stated to stood crystallized on 18.01.2026, after expiry of the period stipulated in the Final Recall Notice dated 10.01.2026.

The Petitioner further produced the details of default as tabulated under:

The Information Utility relied upon is National E-Governance Services Limited (NeSL), with the Record of Financial Information submitted on 25.05.2026; the NeSL record specifies financial debt of Rs.1,35,00,000/-, interest of Rs.6,93,287.67 and total overdue/outstanding of Rs.1,41,93,287.67, and records Date of Default as 18.01.2026, with last repayment shown as nil and last AOD dated 12.01.2026.

That on issuance of the notice and despite due service of notice through all mode, the Corporate Debtor failed to appear in the matter and failed to file any reply within stipulated period and various opportunities. Hence, vide order dated 18.08.2026 its right to file reply was closed and proceeded Ex-parte.

A compliance affidavit has been filed by the Petitioner on 30.07.2026 vide inward no. D-6229 for a limited purpose of complying with the directions issued by this Bench vide its orders dated 25.06.2026 and 13.07.2026, wherein the Petitioner was directed to place on record all the correspondences exchanged between the parties with effect from 01.05.2025 to till date. It is submitted that the available all necessary correspondences have been placed on record and there is no further communication(s) available between the period of 01.05.2025 to till date.

In compliance of our order dated 29.07.2026 as stated above, the Petitioner/ Financial Creditor filed and additional affidavit on 06.08.2026 vide inward no. D-6535. The Petitioner has clarified to have placed on record the following documents through the affidavit as tabulated under:

Further, an additional affidavit has been filed by the Petitioner/ Financial Creditor on 12.08.2026 vide inward no. D-6776 by stating brief facts as under: -

The Petitioner has filed an Additional Affidavit dated 04.08.2026 through its Director and Authorised Representative, Mr. Mohit Nahar (DIN: 08354263), duly authorised vide Board Resolution dated 26.02.2026, in compliance with the directions issued by this Adjudicating Authority vide order dated 29.07.2026.

The affidavit records that the Petitioner was directed to place on record: (a) provisional financial statements as on 31.03.2026; (b) audited financial statements for the year ended 31.03.2025; (c) source of funds advanced to the Corporate Debtor, including confirmation from M/s. Nobal Jewels Pvt. Ltd. and its Master Data; and (d) bank account statements for the period from 01.04.2021 till date.

In compliance, the Petitioner has annexed provisional financial statements for the year ended 31.03.2026 comprising the Balance Sheet as at 31.03.2026 (Annexure R1). The audited financial statements for the year ended 31.03.2025 along with the Audit Report are placed as Annexure R2. It is clarified that the statutory audit for FY 2025-26 has not been completed and hence the financial statements for that year are provisional and unaudited.

The Petitioner has categorically stated that the monies advanced to the Corporate Debtor were out of its own funds generated from business operations and realisation of trade receivables, and that no borrowed funds or third-party funds were utilised for the said purpose.

The affidavit further recorded that the disbursements were made during the period from 03.09.2025 to 04.09.2025, which are duly reflected in the bank account statements annexed as Annexure R5 (Collectively).

It is clarified that the entity referred to as “All Jewels Pvt. Ltd.” in the order dated 29.07.2026 is in fact M/s. Nobal Jewels Pvt. Ltd. (CIN: U51398GJ2015PTC082174). The Master Data of M/s. Nobal Jewels Pvt. Ltd. is placed on record as Annexure R4.

The affidavit recorded that the Petitioner had business relations with M/s. Nobal Jewels Pvt. Ltd. and as on 01.04.2025 was entitled to receive a sum of Rs.1,59,37,283/- (Rupees One Crore Fifty-Nine Lakhs Thirty-Seven Thousand Two Hundred and Eighty-Three Only) towards sale consideration of goods supplied. This receivable is reflected in the audited financial statements annexed as Annexure R2. As on 31.03.2026, the account of M/s. Nobal Jewels Pvt. Ltd. stands settled, with no amount receivable or payable. Ledger accounts are annexed as Annexure R3.

It is further submitted that the monies received from M/s. Nobal Jewels Pvt. Ltd. formed part of the Petitioner's own funds, out of which disbursements to the Corporate Debtor were made. The Master Data of M/s. Nobal Jewels Pvt. Ltd. is annexed as Annexure R4.

It is further noted that the Financial Creditor, has expressly stated and given its consent that, in the event of admission of the present Petition, the Interim Resolution Professional (IRP) may be appointed from the panel/list of Insolvency Professionals maintained by the IBBI, other than the person proposed in the captioned Application.

The Petitioner has also enclosed copies of the Petitioner's bank account statements for the period from 01.04.2021 till 31.07.2026, annexed as Annexure R5 (Collectively) and prayed this Bench to take on record the instant affidavit in compliance of our order dated 29.07.2026.

We have heard Ld. Counsel for the Applicant/FC, Ex-parte against the Respondent/CD, and perused the material on record.

We have considered the pleadings, documents and affidavits placed on record by the Financial Creditor, including the Loan Agreement dated 25.07.2025, the Board Resolutions, bank statements and correspondence exchanged between the parties. The Financial Creditor has established disbursement of an aggregate sum of Rs.1,35,00,000/- in six tranches on 03.09.2025 and 04.09.2025 to the Corporate Debtor. The said transaction was a loan carrying interest at 2.5% per month and consequently constitutes a “financial debt” within the meaning of Section 5(8) of the Code.

The aforesaid disbursement was made pursuant to a written loan arrangement against an obligation of repayment with interest and thus satisfies the essential requirement of disbursement against consideration for the time value of money. The Financial Creditor accordingly falls within the definition of “financial creditor” under Section 5(7) of the Code. The principles laid down in Pioneer Urban Land and Infrastructure Ltd. v. Union of India, (2019) 8 SCC 416, and Phoenix Arc Pvt. Ltd. v. Spade Financial Services Ltd., (2021) 3 SCC 475, support the aforesaid determination.

The original contractual maturity of the loan was 03.11.2025; however, the Financial Creditor thereafter granted extension of time for repayment up to 04.01.2026. The Corporate Debtor, by its letter dated 07.11.2025, acknowledged the subsisting liability and sought further time, but failed to discharge the debt even within the extended period. The Final Recall Notice dated 10.01.2026 was also not complied with and the default asserted by the Financial Creditor is recorded as having occurred on 18.01.2026.

The NeSL record dated 25.05.2026, together with the bank statements and other documents on record, corroborates the particulars of the financial debt and default relied upon by the Financial Creditor. The amount of financial debt in default, even on the basis of the principal sum of Rs.1,35,00,000/-, exceeds the minimum threshold of Rs.1.00 crore prescribed under Section 4 of the Code. The application is, therefore, maintainable on the statutory threshold requirement.

The documents subsequently placed on record through Annexure R1 to Annexure R5, pursuant to the directions of this Adjudicating Authority, corroborate the financial capacity and source and movement of funds of the Financial Creditor. Annexure R1 comprises the provisional financial statements, Annexure R2 the audited financial statements and Audit Report, Annexure R3 the ledger of M/s. Nobal Jewels Private Limited, Annexure R4 its Master Data, and Annexure R5 (Colly.) the relevant bank statements reflecting the financial transactions.

The Corporate Debtor, despite due service of notice and opportunities granted by this Adjudicating Authority, has neither filed its reply nor placed any material disputing the existence of the financial debt or occurrence of default, and the matter was accordingly proceeded with ex parte. However, the determination of debt and default is based upon the documentary evidence placed by the Financial Creditor on record and not merely upon the non-appearance of the Corporate Debtor. The debt and default stand established from the material available before us.

The Hon'ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank, (2018) 1 SCC 407, held that, at the stage of an application under Section 7, the Adjudicating Authority is required to ascertain the existence of a financial debt and default. In B. Prashanth Hegde v. State Bank of India and Anr., (2026) ibclaw.in 86 SC decided on 12.02.2026, the Hon'ble Supreme Court reiterated the essential statutory requirements of a Section 7 application, including financial debt, default and the prescribed threshold.

In The Hon'ble Supreme Court in Catalyst Trusteeship Ltd. v. Ecstasy Realty Pvt. Ltd., (2026) ibclaw.in 104 SC decided on 24.02.2026, reiterated that, for admission under Section 7, the Adjudicating Authority is required to examine whether a financial debt exists and whether default has occurred; the concept of "pre-existing dispute" applicable to proceedings under Section 9 cannot be imported into a Section 7 proceeding. Applying the aforesaid principles, we are satisfied that the statutory requirements for admission are fulfilled.

It is further noted that the Financial Creditor, by its Additional Affidavit filed on 12.08.2026 vide Inward No. D-6776, has stated that, in the event of admission, it consents to appointment of an Insolvency Professional from the panel of Insolvency Professionals maintained by the IBBI other than the person originally proposed in Part-III of Form-1.

In view of the foregoing discussion, we are satisfied that the Financial Creditor has established the existence of financial debt and occurrence of default, and that the application satisfies the requirements of Section 7(5)(a) of the Code. The amount in default is above the statutory threshold and the application is within the period prescribed by law. Accordingly, the present application is liable to be admitted and Corporate Insolvency Resolution Process is required to be initiated against the Corporate Debtor.

Accordingly, in light of the above facts and circumstances, it is, hereby ordered as under: -

The Company Petition bearing CP (IB) No.203/7/AHM/2026 is admitted under Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016, and the Corporate Insolvency Resolution Process (CIRP) is hereby initiated against the Respondent/Corporate Debtor - Antique Exim Private Limited.

As a consequence thereof, a moratorium is declared under Section 14 of the Code, which shall prohibit the following: -

a. The institution or continuation of suits or proceedings against the Corporate Debtor, including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;

b. Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;

c. Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property, including any action under the SARFAESI Act, 2002; and

d. Recovery of any property by an owner or lessor where such property is occupied by or in possession of the Corporate Debtor.

The provisions of Section 14(1) shall not apply to such transactions, agreements or arrangements as may be notified under Section 14(3) of the Code, including proceedings against a surety in a contract of guarantee to the Corporate Debtor.

The moratorium shall come into effect from the date of this order and shall continue till completion of the CIRP or until approval of the Resolution Plan under Section 31(1) or passing of an order for liquidation under Section 33 of the Code, as the case may be.

However, the supply of essential goods or services to the Corporate Debtor shall not be terminated, suspended or interrupted during the moratorium period, except in accordance with Sections 14(2), 14(2A) and other applicable provisions of the Code.

In view of the consent given by the Financial Creditor in its Additional Affidavit filed on 12.08.2026, this Adjudicating Authority appoint Mr. Sanjay Vijay Jeswani, having Registration No. IBBI/IPA-001/IP-P-02891/2024-2025/14432, (e-mail: jeswanisanjay007@gmail.com) under section 13 (1)(c) of the Code to act as Interim Resolution Professional (IRP) from the IBBI panel List. He shall conduct the Corporate Insolvency Process as per the Insolvency and Bankruptcy Code, 2016 r.w. Regulations made thereunder. He shall submit his consent Form-2 along-with Form-B and Registration Certificate within three days.

The Interim Resolution Professional shall make a public announcement of the initiation of CIRP immediately, in accordance with Section 15 of the Code read with Regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and invite claims from the creditors in the prescribed manner.

The Interim Resolution Professional shall take over the management and affairs of the Corporate Debtor in terms of Section 17 of the Code and perform the duties prescribed under Sections 18, 20 and 21 thereof, including taking control and custody of the assets, records and information relating to the Corporate Debtor.

The personnel of the Corporate Debtor, its promoters and all persons associated with its management shall extend every assistance and cooperation to the Interim Resolution Professional, as required under Section 19 of the Code. In the event of non-cooperation, the Interim Resolution Professional shall be at liberty to seek appropriate directions from this Adjudicating Authority.

The Financial Creditor is directed to deposit a sum of Rs.5,00,000/- in advance exclusive of applicable taxes, with the Interim Resolution Professional within seven days from the date of this order to meet the initial costs of the CIRP, including issuing public notice and inviting claims, as per Regulation 33(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This amount shall be adjustable against the IRP's fees and expenses as approved by the Committee of Creditors (CoC) under Regulation 33(3), with any excess refundable to the Financial Creditor or shortfall recoverable from the Corporate Debtor's estate as CIRP costs.

The Registry is directed to communicate a copy of this order to the Financial Creditor, the Corporate Debtor, the Interim Resolution Professional, the concerned Registrar of Companies and the Insolvency and Bankruptcy Board of India, in accordance with law.

In this case, the CD neither attended the proceedings nor filed any reply. The following facts are noted and should be considered by the IRP/RP while conducting the CIRP in this case.

- The Board Resolution of the Financial Creditor is dated 21.07.2025 (Pages 29 and 30 of the Application). The Loan Agreement is dated 25.07.2025 (Pages 33 to 37) and the Board Resolution of the CD regarding loan is dated 30.07.2025 (Pages 31 and 32). The facts show that the Board Resolution of the CD is after entering into loan agreement. The Board Resolution of FC has no mention of any request for loan by the CD. - Page 38 of the Application is a copy of bank statement of the FC maintained with IndusInd Bank which shows disbursements to the CD on 03.09.2025 and 04.09.2025. As on 01.09.2025, the bank balance was Rs 53,719. The disbursements are made after receiving money from Nobal Jewels Private Limited. The FC has submitted that amounts are received against the receivables (sale proceeds). During the month of September 2025 most of the transactions in the bank account are for disbursements to CD, money received from Nobal Jewels.

- The FC vide Affidavit filed on 28.07.2026 submitted that apart from the correspondence already placed on record (with application) there are no written correspondence exchanged between the parties between the period 01.05.2025 to till date. - During financial year 2024-2025 and 2023-2024, the FC had no revenue from operations. It had accumulated loss of Rs 1,11,69,293 and Rs 1,01,99,046 as on 31.03.2025 and 31.03.2024 respectively. The company had other income from interest only. - The FC vide Affidavit filed on 11.08.2026 submitted a copy of ledger of the CD as appearing in its books of account for FY 2018-2019 during which it had transactions with the CD. This Ledger shows that both parties had transactions of receipt and payment of money through banking channels.

Therefore, the IRP/RP shall take note of the material and circumstances emerging from the record, including the sequence of Board Resolutions, source and movement of funds, transactions between the parties and the financial particulars placed on record, while conducting the CIRP in accordance with the provisions of the Code

The IRP is directed to file a status report with this Adjudicating Authority regarding the information collected as per Section 18 (1) (a) of the Code read with Regulation 3A of the IBBI (Resolution Process for Corporate Persons) Regulations, 2016 within 20 days of receipt of this order.

The commencement of the Corporate Insolvency Resolution Process shall be effective from the date of this order.

Accordingly, this Application CP(IB)/203/7/AHM/2026 is hereby admitted. and the Registry shall take necessary steps for compliance with this order.

A certified copy of this order may be issued, if applied for, upon compliance with all requisite formalities.