State Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Visa Infrastructure Ltd., the Corporate Debtor, for initiating Corporate Insolvency Resolution Process. The Adjudicating Authority (NCLT, Kolkata Bench) rejected this application on January 11, 2019, stating that the Corporate Debtor had discharged its guarantee obligations, and thus, no debt was due. The Financial Creditor appealed this order, arguing that the NCLT erred in equating asset valuation inflation with additional equity infusion and that the additional equity of Rs. 125 Crore should have been in cash or equity.

State Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Visa Infrastructure Ltd., the Corporate Debtor, for initiating Corporate Insolvency Resolution Process. The Adjudicating Authority (NCLT, Kolkata Bench) rejected this application on January 11, 2019, stating that the Corporate Debtor had discharged its guarantee obligations, and thus, no debt was due. The Financial Creditor appealed this order, arguing that the NCLT erred in equating asset valuation inflation with additional equity infusion and that the additional equity of Rs. 125 Crore should have been in cash or equity.