# In the matter of Virajaa Steel and Power Private Limited

> NCLT judgment dated 2025-09-09. Citation: TCN-2025-NCLT-01349. The case involves an application filed by M/s Shresth Builders Private Limited (Financial…

- **Court:** NCLT
- **Order date:** 9 Sept 2025
- **Citation:** TCN-2025-NCLT-01349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/virajaa-steel-and-power-private-limited-4f52e08b

## Summary

### Background

The case involves an application filed by M/s Shresth Builders Private Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Virajaa Steel and Power Private Limited (Corporate Debtor) for a financial debt of Rs. 1,18,88,924/-.

## Facts

M/s Shresth Builders Private Limited (Applicant) filed an application under Section 7 of the IBC to initiate CIRP against M/s Virajaa Steel and Power Private Limited (Corporate Debtor).

The Applicant claimed a financial debt of Rs. 1,18,88,924/-.

The Applicant disbursed a loan of Rs. 50,00,000/- to the Corporate Debtor on 13.03.2014 without a formal agreement.

The Corporate Debtor acknowledged the debt in its balance sheets and deducted TDS on interest payments.

The Corporate Debtor defaulted on interest payments from FY 2019-20 onwards.

The Applicant issued legal notices to the Corporate Debtor demanding repayment of the outstanding amount.

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## Issues and analysis

### Issue 1: Whether the Applicant qualifies as a Financial Creditor under Section 5(7) read with Section 5(8) …

**Ratio:** The Tribunal held that the Applicant

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**Reasoning:** The Tribunal considered the definition of 'financial creditor' and 'financial debt' under

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**Interpretation:** The Tribunal interpreted Section 5(7) and 5(8) of the IBC to include debts

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**Application:** The Tribunal applied the definition of 'financial creditor' and 'financial

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## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** Shresth Builders…
- **Respondents:** Virajaa Steel and…
- **Other parties:** Umesh Chandra…
- **Advocates:** Saroj Kumar…; Ambika Prasad…

## Timeline

- **2014-03-13 — Loan Disbur…**: Applicant disbursed a loan of Rs.…
- **2021-03-13 — Demand N…**: Applicant issued a notice demanding the…

## 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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