# In the matter of Siddhi Vinayak Logistics Ltd. CP (IB) No. 89-7-NCLT-AHM-2017

> NCLT judgment dated 2017-09-12. Citation: TCN-2017-NCLT-00426. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Sept 2017
- **Citation:** TCN-2017-NCLT-00426
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siddhi-vinayak-logistics-ltd-cp-ib-no-89-7-nclt-ahm-2017-a799d36f

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Siddhi Vinayak Logistics Ltd., treating it as the 'Corporate Debtor'. The bank had sanctioned a term loan facility to the respondent, which later faced financial difficulties, leading to the bank classifying the account as a Non-Performing Asset (NPA) and initiating recovery proceedings.

## Facts

Punjab National Bank (PNB) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Siddhi Vinayak Logistics Ltd. PNB, styling itself as a 'Financial Creditor', claimed that Siddhi Vinayak Logistics Ltd., the 'Corporate Debtor', had defaulted on its loan repayments. PNB had sanctioned a Term Loan Facility of Rs. 100 Crores to Siddhi Vinayak Logistics Ltd. on June 13, 2013. The respondent company accepted the terms and conditions mentioned in the Sanction Letter. The Respondent executed various documents for the facilities availed by it. Respondent also hypothecated 335 commercial vehicles valuing 125.37 Crores to the Applicant Bank. Respondent also pledged Fixed Deposits of

…

## Issues and analysis

### Issue 1: Whether the application filed by Punjab National Bank under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

…

**Reasoning:** The Adjudicating Authority considered the documents filed by the Applicant, which

…

**Interpretation:** Section 7 provides the mechanism for a financial creditor to trigger the

…

**Application:** The Authority found that the Applicant had demonstrated the existence of a debt

…

## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Punjab National…
- **Respondents:** Siddhi Vinayak…

## Timeline

- **2013-06-13 — Sanction…**: Applicant Bank sanctioned Term Loan Facility…
- **2013-06-24 — Board Me…**: Respondent Company accepted the terms and conditions mentioned in the Sanction Letter in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

---

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/siddhi-vinayak-logistics-ltd-cp-ib-no-89-7-nclt-ahm-2017-a799d36f