# In the matter of Vandana Energy & Steels Pvt. Ltd CP No. 1347-I&BP-2017

> NCLT judgment dated 2017-11-20. Citation: TCN-2017-NCLT-00171. Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 20 Nov 2017
- **Citation:** TCN-2017-NCLT-00171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vandana-energy-steels-pvt-ltd-cp-no-1347-ibp-2017-6f7caa37

## Summary

### Background

Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against Vandana Energy & Steels Pvt. Ltd. (Corporate Debtor) due to a default of ₹132.98 Crores. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor failed to appear despite service, leading the Bench to proceed ex-parte based on available facts.

## Facts

Punjab National Bank (PNB) filed a petition against Vandana Energy & Steels Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a default of ₹132.98 Crores as of 05.02.2015. PNB submitted documents including loan sanction letters, guarantee agreements, and a Master Restructuring Agreement to prove the debt and default. The Corporate Debtor did not appear despite service, leading the NCLT to proceed ex-parte. The accounts of the Corporate Debtor had become irregular, with a sum of ₹202,94,09,999/- due to Punjab National Bank, UCO Bank, and Bank of Baroda. A SARFAESI Notice dated 15.10.2015 was issued demanding ₹228,71,11,517/-. Mr. Sanjay Gupta was named as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the Corporate Debtor …

**Ratio:** The Adjudicating Authority must determine if a default has occurred based on the evidence

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**Reasoning:** The court perused the documents filed by the Creditor and found it evident that the

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**Interpretation:** Section 7 of the IBC requires the Adjudicating Authority to ascertain the

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**Application:** The court found sufficient evidence of default based on the documents submitted

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## Parties

- **Judges:** M.K. Sh…; V. Nallasen…
- **Appellants:** Punjab National…
- **Respondents:** Vandana Energy &…

## Timeline

- **2015-02-05 — Default…**: Corporate Debtor committed default…
- **2015-10-15 — SARFAESI…**: SARFAESI Notice issued…

## 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)

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