# In the matter of Vista Steel Private Limited CP (IB) No. 552-KB-2017

> NCLT judgment dated 2017-12-15. Citation: TCN-2017-NCLT-00049. ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Dec 2017
- **Citation:** TCN-2017-NCLT-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vista-steel-private-limited-cp-ib-no-552-kb-2017-a71e2f6d

## Summary

### Background

ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for the initiation of Corporate Insolvency Resolution Process against Vista Steel Private Limited, which acted as a corporate guarantor for credit facilities availed by Palogix Infrastructure Pvt. Ltd. ICICI Bank had granted various credit facilities to Palogix Infrastructure Pvt. Ltd., secured by corporate guarantees from Vista Steel. Palogix Infrastructure Pvt. Ltd. is already undergoing corporate insolvency resolution process, with a moratorium declared. Vista Steel Private Limited, as the corporate guarantor, defaulted on its obligations, leading ICICI Bank to invoke the guarantees and file the application.

## Facts

ICICI Bank Limited, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vista Steel Private Limited, the corporate debtor. Vista Steel had provided corporate guarantees for credit facilities availed by Palogix Infrastructure Pvt. Ltd. from ICICI Bank. Palogix Infrastructure Pvt. Ltd. defaulted on its debt obligations, leading ICICI Bank to invoke the corporate guarantees provided by Vista Steel. As of August 31, 2017, Vista Steel was in default for Rs. 354,009,796.06. Palogix Infrastructure Pvt. Ltd. was already undergoing CIRP, and a moratorium had been declared. Vista Steel argued that initiating CIRP against it as a guarantor during the moratorium

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the …

**Ratio:** The ratio is based on the interpretation of Section 14 of the Insolvency and Bankruptcy

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**Reasoning:** The Tribunal reasoned that allowing proceedings against the corporate guarantor during

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**Interpretation:** Section 14 of the I&B Code is interpreted to provide a comprehensive

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**Application:** In this case, the Tribunal applied the ratio and reasoning to the specific

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** ICICI Bank…
- **Respondents:** Vista Steel…

## Timeline

- **2016-05-10 — Loan Recall…**: The Financial Creditor recalled the RTL facilities vide Loan Recall Notice dated…
- **2016-10-14 — Invocation of Corporate…**: The financial creditor invoked the Vista Steel Corporate Guarantees vide invocation…

## 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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