# In the matter of Visa International Limited IA No.1293 & 1449-KB-2020 in CP (IB) No.759-KB-2017

> NCLT judgment dated 2021-05-11. Citation: TCN-2021-NCLT-02166. State Bank of India initiated corporate insolvency resolution process (CIRP) against Visa…

- **Court:** NCLT
- **Order date:** 11 May 2021
- **Citation:** TCN-2021-NCLT-02166
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/visa-international-limited-ia-no1293-1449-kb-2020-in-cp-ib-no759-kb-2017-49035ae3

## Summary

### Background

State Bank of India initiated corporate insolvency resolution process (CIRP) against Visa International Limited (corporate debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC) due to defaults by Visa Steel Limited, for which Visa International Limited was a corporate guarantor. The CIRP commenced on 07.08.2019. An application was filed by a member of the suspended board of directors of Visa International Limited, seeking to set aside the decision of the Committee of Creditors (CoC) to reject a resolution plan submitted by Progressive Star Finance Private Limited. The resolution plan had initially been deemed viable and feasible at the 14th CoC meeting but was later rejected at the 15th CoC meeting.

## Facts

State Bank of India (SBI) initiated CIRP against Visa International Limited (VIL) under Section 7 of IBC. VIL acted as a corporate guarantor for Visa Steel Limited (VSL), which defaulted on its loans. Ashok Kumar Gulla was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP invited Expressions of Interest (EoIs) and shortlisted Progressive Star Finance Private Limited and East India Udyog Limited as resolution applicants. Progressive Star Finance Private Limited submitted two financial offers: ₹10.17 crore subject to release of pledged shares or ₹6.10 crore without release of pledged shares. East India Udyog Limited's plan was rejected due to a downward revision in their offer. The revised resolution

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## Issues and analysis

### Issue 1: Whether the applicant, as a member of the suspended board of directors of the corporate debtor, has …

**Ratio:** The promoter of the corporate debtor cannot have a grievance greater than the

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**Reasoning:** The NCLT relied on the precedent set in Deepak Singhania v LML Ltd & others, where

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**Interpretation:** The interpretation of locus standi in the context of IBC proceedings is that

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**Application:** The NCLT determined that the applicant, being a member of the suspended board

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Arun Kumar…
- **Respondents:** Visa International…; Progressive Star…

## Timeline

- **2017-01-01 — CP (IB) No.759…**: The case number assigned to the…
- **2019-08-07 — Admission of Ap…**: The application filed by State Bank of India under Section 7 of the IBC against Visa…

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