# In the matter of Sri Vinayakha Spinning Mills Private Limited

> NCLT judgment dated 2026-04-02. Citation: TCN-2026-NCLT-00325. Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 2 Apr 2026
- **Citation:** TCN-2026-NCLT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/sri-vinayakha-spinning-mills-private-limited-d28b5341

## Summary

### Background

Axis Bank Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Sri Vinayakha Spinning Mills Private Limited due to default in repayment of financial debt.

## Facts

Axis Bank Ltd. filed a petition under Section 7 of the IBC against Sri Vinayakha Spinning Mills Private Limited.

The Corporate Debtor defaulted in repayment of credit facilities, with the account being classified as NPA on 28.02.2024.

The amount in default was stated as Rs.18,12,50,309.80 as of 30.06.2025.

The Financial Creditor issued a Recall-cum-Demand Notice on 03.09.2024.

The Corporate Debtor proposed a settlement, which was rejected by the Financial Creditor.

The Corporate Debtor availed various cash credit and term loan facilities aggregating to Rs.19,89,97,500/-.

The Financial Creditor has proposed the name of SPP Insolvency Professionals LLP as an Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** The Hon'ble Supreme Court in the case of Laxmi Pat Surana Vs. Union Bank of India &

…

**Reasoning:** The record shows that the Corporate Debtor committed the default in repayment of the

…

**Interpretation:** The occurrence of default is a prerequisite for maintaining a petition under

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**Application:** The Corporate Debtor's default in repayment of the credit facilities satisfies

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Axis Ban…
- **Respondents:** Vinayakha…
- **Other parties:** K. Madhes…; M.V. Jay…; +1 more
- **Advocates:** Shri. Bharadwaj…; Shri. T…; +2 more

## Timeline

- **2005-06-24 — Incorporati…**: Sri Vinayakha Spinning Mills…
- **2017-10-11 — Sanction…**: Financial Creditor granted the cash…

## 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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