Archive · 27 Dec 2025
NCLAT Rejects Insolvency Plea Against Jumbo Finvest
A bank called Equitas Small Finance Bank tried to start insolvency proceedings against a company named Jumbo Finvest.
The National Company Law Tribunal (NCLT) in Jaipur first said no because Jumbo Finvest is a Financial Service Provider, and the rules are different for them.
The bank then appealed to a higher tribunal, the NCLAT.
The NCLAT also said no, explaining that even though the RBI had some restrictions on Jumbo Finvest, it was still a Financial Service Provider until its registration was canceled.
The NCLAT agreed with the NCLT that the bank couldn't start insolvency proceedings against Jumbo Finvest in this way.
However, the bank can still try to recover its dues through other legal means.
NCLAT rejected Equitas Small Finance Bank's appeal against Jumbo Finvest, upholding NCLT's order.
NCLT had rejected the insolvency plea, stating Jumbo Finvest is a Financial Service Provider and not a corporate person for Section 7 application.
Equitas argued that Jumbo Finvest was barred by RBI from increasing its balance sheet and accessing public funds.
NCLAT ruled that Jumbo Finvest's registration as a Financial Service Provider was valid until its cancellation on October 14.
NCLAT clarified that the rejection of the Section 7 application does not prevent Equitas from pursuing other legal remedies for its dues.
- Who
- Equitas Small Finance Bank (appellant) and Jumbo Finvest (respondent)
- What
- Rejection of insolvency plea against Jumbo Finvest
- When
- NCLT order was earlier; NCLAT decision date not specified
- Where
- Jaipur Bench of NCLT and NCLAT
- Why
- Jumbo Finvest is a Financial Service Provider, and the RBI's order did not change its status
- Appellant
- Equitas Small Finance Bank
- Respondent
- Jumbo Finvest
- Tribunal
- National Company Law Appellate Tribunal (NCLAT)
- Original Order
- National Company Law Tribunal (NCLT) Jaipur Bench
- RBI Order Date
- January 16, 2020
- Registration Cancellation Date
- October 14 (year not specified)
- NCLAT Bench
- Justice Ashok Bhushan and Member (Technical) Barun Mitra
