# In the matter of Vijay Engineering Enterprises Pvt. Ltd. CP (IB)1712-MB-C-IV-2019

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-01995. The case involves a petition filed by Vidarbha Diagnostics Pvt. Ltd., a Financial Creditor,…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-01995
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vijay-engineering-enterprises-pvt-ltd-cp-ib1712-mb-c-iv-2019-65361024

## Summary

### Background

The case involves a petition filed by Vidarbha Diagnostics Pvt. Ltd., a Financial Creditor, against Vijay Engineering Enterprises Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's failure to repay a loan of Rs. 33,00,000 as principal and Rs. 3,90,576 as interest. The date of default was 31.07.2018, and the petition was filed on 30.04.2019.

## Facts

Vidarbha Diagnostics Pvt. Ltd. (Financial Creditor) filed a petition against Vijay Engineering Enterprises Pvt. Ltd. (Corporate Debtor) under Section 7 of the IBC, 2016, seeking to initiate CIRP. The Corporate Debtor had approached the Financial Creditor for a short-term loan. A loan agreement dated 14.09.2017 was executed, under which the Financial Creditor disbursed Rs. 33,00,000 to the Corporate Debtor at an interest rate of 15% p.a., payable within nine months, i.e., by 31.07.2018. The Corporate Debtor provided two post-dated cheques as security. The Corporate Debtor defaulted on repayment on 31.07.2018. The Financial Creditor sent letters to the Corporate Debtor regarding the debt, to which the Corporate Debtor responded, admitting the liability and seeking time

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## Issues and analysis

### Issue 1: Whether the application made by the Financial Creditor is complete in all respects as required by …

**Ratio:** The Hon'ble Supreme Court in the matter of Innoventive Industries Limited V. ICICI Bank

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**Reasoning:** The NCLT observed that the application made by the Financial Creditor is complete in all

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**Interpretation:** The completeness of the application is a prerequisite for initiating the CIRP.

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**Application:** The NCLT found that the Financial Creditor's application was complete, as it

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Vidarbha Diagnosti…
- **Respondents:** Vijay Engineering…

## Timeline

- **2017-09-14 — Loan Agre…**: Loan agreement executed between Vidarbha Diagnostics Pvt. Ltd. and Vijay Engineering…
- **2018-07-31 — Date of D…**: Corporate Debtor defaulted on…

## 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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