# In the matter of Shree Vindhya Paper Mills Ltd. CP(IB) 2045(MB)-2018

> NCLT judgment dated 2019-06-07. Citation: TCN-2019-NCLT-02998. The case involves a Company Petition filed by Stressed Assets Stabilisation Fund under Section…

- **Court:** NCLT
- **Order date:** 7 Jun 2019
- **Citation:** TCN-2019-NCLT-02998
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-vindhya-paper-mills-ltd-cpib-2045mb-2018-5915699d

## Summary

### Background

The case involves a Company Petition filed by Stressed Assets Stabilisation Fund under Section 7 of the IBC, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Shree Vindhya Paper Mills Ltd due to non-payment of a financial debt amounting to Rs. 195,05,25,359. The debt comprises principal amounts of credit facilities, interest, and expenses related to loan recovery, which were due as of April 1, 2018. The Financial Creditor granted debt to the Corporate Debtor through Term Loan Facility I and Term Loan Facility II between 1993 and 1997. The Corporate Debtor defaulted on payments, leading to the petition.

## Facts

The Stressed Assets Stabilisation Fund filed a Company Petition under Section 7 of the IBC, 2016, to initiate CIRP against Shree Vindhya Paper Mills Ltd for non-payment of a financial debt of Rs. 195,05,25,359, which was due as of April 1, 2018. The debt comprised principal amounts of credit facilities, interest, and expenses related to loan recovery. The Financial Creditor had granted debt to the Corporate Debtor through Term Loan Facility I (Rs. 8,05,10,213) and Term Loan Facility II (Rs. 6,02,10,000) between 1993 and 1997. The Corporate Debtor defaulted on payments, leading to the petition. The Financial Creditor is a Trust set up by the Government of India. The Corporate Debtor's account was categorized as a Non-Performing Asset (NPA) on May 1, 1999. The Corporate

…

## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Financial Creditor under Section 7 of the IBC, 2016, for …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate CIRP against a

…

**Reasoning:** The court observed that the Financial Creditor had filed the petition under Section 7 of

…

**Interpretation:** Section 7 of the IBC, 2016 provides the legal basis for a financial creditor to

…

**Application:** The Financial Creditor, Stressed Assets Stabilisation Fund, filed the petition

…

## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Stressed Assets…
- **Respondents:** Shree Vindhya…

## Timeline

- **1993-01-01 — Loan Disbur…**: Term Loan Facility I and Term Loan Facility II were disbursed between January 1993 and…
- **1999-05-01 — Account Categorized as…**: The account of the Corporate Debtor was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shree-vindhya-paper-mills-ltd-cpib-2045mb-2018-5915699d