NCLAT Permits Rs 1.26 Crore Deposit by Vishwajeet Jhavar; Insolvency Process to Continue
Mumbai/Pune, 5th March 2026: The National Company Law Appellate Tribunal (NCLAT) has granted a temporary breather to Vishwajeet Jhavar, a personal guarantor to Marveledge Realtors Private Limited, by allowing him to deposit ₹1.26 crore while his appeal against the initiation of insolvency is heard.
This development follows a January 30, 2026, order by the National Company Law Tribunal (NCLT) Mumbai Bench, which admitted an insolvency petition against Jhavar for an astronomical outstanding debt of over ₹226.89 crore.
“The NCLT order was issued without hearing us. We were not given any notice to appear. According to me, all the outstanding dues against this ₹225 crore loan were cleared by selling property. I have all the records,” Jhavar said.
Background of the Dispute
The case originated from a financial facility of ₹25 crore granted by APRN Enterprises Private Limited (formerly Ansapack Private Limited) to the corporate debtor, Marveledge Realtors, in February 2017. Jhavar had provided an unconditional and irrevocable personal guarantee to secure this deposit.
According to court records, the corporate debtor defaulted on the repayment as early as May 2017. Despite a settlement agreement executed in January 2025, a subsequent default led APRN Enterprises to revoke the settlement and invoke the personal guarantee. By April 2025, the total claim—including principal and interest—had ballooned to ₹224,27,72,102.
NCLT Mumbai Orders Insolvency
In its January 30 order, the NCLT Mumbai Bench, comprising Prabhat Kumar (Technical Member) and Sushil Mahadeorao Kochey (Judicial Member), noted that Jhavar had failed to file a reply despite multiple opportunities. Consequently, the Tribunal:
Admitted the insolvency petition under Section 95 of the IBC.
Declared a moratorium on Jhavar’s personal assets and legal proceedings.
Appointed Truvisory Insolvency Professionals to manage the process.
NCLAT’s Intervention
Jhavar subsequently challenged the NCLT’s decision before the Principal Bench of the NCLAT in New Delhi. On March 2, 2026, a bench led by Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra heard the appeal.
Senior Advocate Sunil Fernandes, representing Jhavar, submitted that his client is ready to deposit ₹1,26,00,000 in an interest-bearing fixed deposit in the name of the NCLAT Registrar within ten days. Furthermore, the appellant intends to send a formal proposal to the financial creditor (APRN Enterprises) regarding the deposited amount and interest claims.
Current Status
While the NCLAT permitted the deposit and scheduled the next hearing for March 18, 2026, the tribunal clarified that the insolvency process would not be entirely halted.
The bench ordered:
“In the meantime, CIRP (Corporate Insolvency Resolution Process) may go on, however, no repayment plan shall be finalized.”
This conditional stay ensures that while the administrative steps of insolvency continue, no final decision on the distribution of assets or repayment will be reached until the appellate tribunal reviews the merits of Jhavar’s proposal and appeal.
