Tanay Securities And Services Private ... vs Organic World Private Limited

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Comp. App. (AT) (Ins) No. 1486 of 2025 IN THE MATTER OF: Tanay Securities & Services Pvt. Ltd. & Anr. ...Appellant(s)

Versus

Organic World Pvt. Ltd. ...Respondent(s)

Present: For Appellant : Mr. Anupam Lal Das, Sr. Advocate with Mr. Sinha Shrey Nikhilesh, Mr. Parth Davar, Mr. Swastik Verma, Advocates

For Respondents : Mr. Vijayesh A, Mr. Aarya Chhangan, Advocates

ORDER

(Hybrid Mode)

24.02.2026 Heard Ld. Counsel for Appellant and Ld. Counsel appearing

for the Respondent.

2. This Appeal has been filed against the order passed by the Adjudicating

Authority dated 11/09/2025, by which section 7 Application filed by the

Appellant has been rejected.

3. The brief fact necessary to be noticed for deciding the Appeal are, the

Appellant claim to have given unsecured loan to the Corporate Debtor, the

Applicant were shareholders in the CD. Recall notice was given on 21/08/2024

by the Appellant to the CD requesting the CD to discharge a debt of

Rs. 2,24,97,222/-. Reply was sent by e-mail dated 05/09/2021, where in Para

6, following was stated :

"6. However, the company would be able to return your unsecured loan after repayment of the entire loan facility availed by Organic World from the Bank, which is possible only by selling the assets of the company for which endeavors are being made by the Company".

4. The Appellant thereafter filed a Section 7 Application, in which notices

were issued. Parties filed their replies and by impugned order, the Adjudicating

Authority has rejected Section 7 Application and also imposed cost of

Rs. 2,00,000. The Adjudicating Authority, in Para 45 of the order has noticed

the reply and made following observations :

"45. The Corporate Debtor in its reply to notice of 21.08.2023 (vide email of 05.09.2023 (paragraph 22 of this order) had admitted the liability of the repayment of unsecured loan after repayment of the entire loan facility availed from the Bank. The CD has replied that the repayment of the unsecured loan is subject to settlement of the dues of the Bank. On the other hand, the Applicant has claimed the understanding between the CD and the Petitioner was only that the unsecured loan shall be due and payable by the CD as per the demand. However, this assertion of the Applicant is unsupported by any evidence."

5. The Adjudicating Authority when noticed the admission of liability of the

repayment of unsecured loan after repayment of the entire loan facility availed

from the bank, the same was relevant factor and indicated the admission of

unsecured debt.

6. Appellant, in this Appeal has brought on record the letter issued by the

State Bank of India dated 06/06/2025 that entire loan facilities given to the CD

has been closed on 14/02/2025. The letter dated 06/06/2025 is as follows.

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This is to certify that M/S Organic World Private Limited had availed a Working capital and Term Loan limit with other Facilities like CEL Limit, EPC Limit, GECL and Warehouse Receivable Discounting had also been availed and closed. This exposure has been properly discharged on 14.02.2025 & no dues remain on the customer in respect for above mentioned account.

We have also cancelled our applicable Hypothecation charge on current assets like stocks & receivables & charge on Factory building & land for same.

7. Although Adjudicating Authority, in the impugned order has also made

various other observations for rejecting the Section 7 Application, we are of the

view that in view of the observations made in Para 45 as noted above and the

reply given in Para 6, and the facts that the loan of the State Bank of India has

been closed, the amount of SBI having been paid, Para 45 of the order of the

Adjudicating Authority clearly contains an admission of liability of unsecured

loan. There were also on the record TDS certificates, which has been mentioned

in Paragraph 40 of the Impugned orders.

8. We thus are of the view that, in facts of the present case ends of justice be

served in setting aside by the impugned order and reviving the Section 7

Application before the Adjudicating Authority for fresh consideration. We make

it clear that it shall be open for both the Parties to raise all their submissions

and fresh order need to be passed by the Adjudicating Authority considering all

facts and submissions.

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9. The Adjudicating Authority shall endeavour to dispose of the matter

expeditiously.

10. With the above observations, the Appeal is disposed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Prerana/md

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