# In the matter of Vangal Amman health Services Limited CP-634-(IB)-CB-2017

> NCLT judgment dated 2017-11-22. Citation: TCN-2017-NCLT-00150. The case involves a Company Petition filed by Bank of Baroda, the Petitioner/Financial…

- **Court:** NCLT
- **Order date:** 22 Nov 2017
- **Citation:** TCN-2017-NCLT-00150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vangal-amman-health-services-limited-cp-634-ib-cb-2017-6e47b4cf

## Summary

### Background

The case involves a Company Petition filed by Bank of Baroda, the Petitioner/Financial Creditor, against M/s. Vangal Amman Health Services Limited, the Respondent/Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code 2016. The petition was filed due to the Corporate Debtor's inability to pay its debt. The Corporate Debtor had availed three credit facilities from the petitioner, resulting in a total outstanding amount of Rs. 15,95,00,000/- as of 31.07.2017. The account was declared NPA on 07.09.2013 and was under CDR Mechanism.

## Facts

Bank of Baroda, a banking company, filed a company petition against Vangal Amman Health Services Limited under Section 7 of the Insolvency and Bankruptcy Code 2016, citing the corporate debtor's inability to pay its debt. Vangal Amman Health Services Limited is registered under the Companies Act, 1956, and operates in the health services sector. The corporate debtor had availed three credit facilities from Bank of Baroda, resulting in a total outstanding amount of Rs. 15,95,00,000 as of July 31, 2017. The account was declared a Non-Performing Asset (NPA) on September 7, 2013, and was under a Corporate Debt Restructuring (CDR) mechanism. Bank of Baroda had provided the loan to the corporate debtor with security held of primary securities, hypothecation, and collateral

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## Issues and analysis

### Issue 1: Whether the petition filed by Bank of Baroda against Vangal Amman Health Services Limited under …

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

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and perused the

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

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**Application:** The Adjudicating Authority found that Bank of Baroda had provided sufficient

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Bank of B…
- **Respondents:** M/s. Vangal Amman…
- **Advocates:** G. Kalyan J…; C. Deivasi…

## Timeline

- **2013-09-07 — NPA Decla…**: Account of Vangal Amman Health Services…
- **2017-07-31 — Outstanding…**: Total outstanding amount due from Vangal Amman Health Services Limited was Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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