# 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-01987. 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-01987
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vijay-engineering-enterprises-pvt-ltd-cp-ib1712-mb-c-iv-2019-d3439c54

## 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/- principal and Rs. 3,90,576/- 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 of Rs. 33,00,000, which was disbursed on 14.09.2017 under a loan agreement with 15% p.a. interest, payable 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, and the Corporate Debtor admitted the liability and sought time for payment. The Corporate Debtor cited financial difficulties as the reason for non-payment. Cheques issued by

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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 Supreme Court in Innoventive Industries Limited V. ICICI Bank & Anr. held that

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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 application was complete, as it contained all the

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## Parties

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

## Timeline

- **2017-09-14 — Loan Agre…**: Loan agreement between Financial Creditor…
- **2018-07-31 — Date of D…**: Corporate Debtor…

## 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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