NCLT admits JM Financial Credit's insolvency plea against RM Bhuther and Co
This story was originally published at 19:39 IST on 4 September 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal Thursday admitted a petition by JM Financial Credit Solutions Ltd. to start insolvency proceedings against R.M. Bhuther and Co. Ltd. for an unpaid amount of INR 3.32 billion. The tribunal appointed Gajesh Labhchand Jain as the interim resolution professional of the debt-ridden company to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.
The tribunal noted that the corporate debtor has defaulted in repayment of financial debt to JM Financial Credit and such default was well over the minimum threshold of INR 10 million, as prescribed under Section 4 of the 2016 Code. The tribunal said that the application filed by the petitioner under Section 7 of the Code was complete and there are no disciplinary proceedings pending against the proposed resolution professional.
R.M. Bhuther and Co. is a corporate body incorporated in 2001. JM Financial Credit Solutions, a wholly owned subsidiary of JM Financial Ltd., had given loans to H.E.M Bhattad, an association of persons that also included R.M. Bhuther and Co. The loans were secured by a corporate guarantee from R.M. Bhuther and Co. After H.E.M Bhattad and R.M. Bhuther and Co. defaulted on the loans, JM Financial Credit Solutions moved the tribunal to start insolvency proceedings against the corporate debtor.
On Thursday, shares of JM Financial ended at INR 182.13 on the National Stock Exchange, down almost 4% from the previous close. End
Reported by Surya Tripathi
Edited by Nishant Maher
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