In Brief
A money lender obtained a decree from Delhi High Court in 2018 for ₹4.38 crores against Anjani Technoplast, an otherwise solvent manufacturing company. Instead of executing the decree, the lender filed insolvency proceedings. The Supreme Court held that the Insolvency and Bankruptcy Code is not a debt recovery tool and cannot substitute for civil execution processes. Since the company was solvent, had deposited substantial funds, and the debt amount was seriously disputed with inconsistent figures across tax filings, using insolvency as a recovery mechanism constituted abuse of process. The Court emphasized the Code's purpose is corporate revival, not creditor collection.
The lawyer headnote and full judgment text are available to registered users.