Saraswati Wire and Cable Industries v. Mohammad Moinuddin Khan 2025 INSC 1410 - S.7 IBC - Moonshine Defence
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Insolvency and Bankruptcy Code 2016 - Section 7 -The adjudicating authority must advert to the contentions put forth on the application filed under Section 7 of the IBC, examine the material placed before it by the financial creditor and record satisfaction as to whether there is default or not and, while doing so, the contention put forth by the corporate debtor shall also be noted to determine as to whether there is substance in the defence and to arrive at the conclusion whether there is default- The process cannot be defeated by a corporate debtor by raising moonshine defence only to delay the process. (Para 18) [Context: In this case, Supreme Court found that that the defence of pre-existing disputes sought to be put forth by the CD was mere moonshine and had no credible basis or foundation. ]
Case Info
Case Details
- Case name: M/s. Saraswati Wire and Cable Industries v. Mohammad Moinuddin Khan and others
- Neutral citation: 2025 INSC 1410
- Coram: Justice Sanjay Kumar; Justice Alok Aradhe
- Judgment date: December 10, 2025
- Court: Supreme Court of India, Civil Appellate Jurisdiction
- Appeal No.: Civil Appeal No. 12261 of 2024
Statutes / Laws Referred
- Insolvency and Bankruptcy Code, 2016 — Sections 8, 9, 12A, 61
- Companies Act, 1956 — Section 433(1)(a) (context: winding up jurisprudence)
Caselaws and Citations
- Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd., (2018) 1 SCC 353
- Amalgamated Commercial Traders (P.) Ltd. v. A.C.K. Krishnaswami, (1965) 35 Comp Cas 456
- Madhusudan Gordhandas & Co. v. Madhu Woollen Industries Pvt. Ltd., (1971) 3 SCC 632
- Mediquip Systems (P) Ltd. v. Proxima Medical System Gmbh, (2005) 7 SCC 42
- Vijay Industries v. NATL Technologies Ltd., (2009) 3 SCC 527
- IBA Health (India) Pvt. Ltd. v. Info-Drive Systems Sdn. Bhd., (2010) 10 SCC 553
- Indus Biotech Pvt. Ltd. v. Kotak India Venture (Offshore) Fund, (2021) 6 SCC 436
- Tata Consultancy Services Ltd. v. SK Wheels Pvt. Ltd., Resolution Professional, Vishal Ghisulal Jain, (2022) 2 SCC 583
#SupremeCourt reiterated that CIRP cannot be defeated by a corporate debtor by raising moonshine defence only to delay the process. https://t.co/fRzkRtWU6E pic.twitter.com/1ZrBc0fUrY
— CiteCase 🇮🇳 (@CiteCase) December 10, 2025