New Delhi: The Hon’ble Delhi High Court has granted ad-interim relief to Advik Capital Limited, an RBI-registered Non-Banking Financial Company (NBFC), in proceedings against Elitecon International Limited. The order reinforces judicial safeguards for NBFC lending in India and underscores the judiciary’s role in protecting the integrity of the regulated credit ecosystem.
The case arose from loan facilities amounting to ₹64 crore, disbursed under a duly executed loan agreement through formal banking channels. Following non-repayment, Advik Capital issued a loan recall notice demanding ₹71.15 crore, inclusive of accrued interest.
During the hearing, the Court examined material placed on record by Advik Capital, including reliance on a forensic report and references to regulatory proceedings concerning Elitecon International Limited. After evaluating the submissions at the interim stage, the Court held that a prima facie case exists in favour of Advik Capital, that the balance of convenience lies with the lender, and that irreparable injury would result if interim protection were not granted.
On these findings, the Court restrained Elitecon International Limited and its management from creating any third-party rights or interests in their movable and immovable assets, except in the ordinary course of business, pending further orders.
The interim order carries wider significance for India’s financial system. It highlights that repayment obligations arising from loans disbursed through banking channels cannot be frustrated by unilateral denial, and that preservation of borrower assets is essential to safeguard the interests of regulated lenders. For NBFCs, which play a critical role in credit delivery to emerging businesses and underserved sectors, such judicial protection is vital to maintaining credit discipline and systemic confidence.
A spokesperson of Advik Capital Limited expressed gratitude, stating: “We express our deep respect and gratitude to the Hon’ble Delhi High Court for upholding the principles of nyaya and for extending interim protection after careful consideration of the record. For regulated NBFCs, confidence in judicial enforcement is essential to the functioning of India’s credit system. Orders such as these reinforce faith in the rule of law and ensure that lending through banking channels remains secure and enforceable.”
The matter remains pending before the Hon’ble Delhi High Court and is subject to final adjudication.
