# In the matter of SVP TEXTILES VENTURES PRIVATE LIMITED

> NCLT judgment dated 2025-05-09. Citation: TCN-2025-NCLT-00090. This case involves an application filed by Central Bank of India Limited, the Financial…

- **Court:** NCLT
- **Order date:** 9 May 2025
- **Citation:** TCN-2025-NCLT-00090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/svp-textiles-ventures-private-limited-ad8e2895

## Summary

### Background

This case involves an application filed by Central Bank of India Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s SVP Textiles Ventures Pvt Ltd, the Corporate Debtor, seeking the commencement of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor claims that the Corporate Debtor has defaulted on its financial obligations. The Corporate Debtor is a corporate guarantor to M/s. Shri Vallabh Pittie South West Industries Ltd, the principal borrower. The application seeks the appointment of an Interim Resolution Professional (IRP) and a declaration of moratorium.

## Facts

Central Bank of India Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s SVP Textiles Ventures Pvt Ltd, the Corporate Debtor, seeking the commencement of CIRP. The Corporate Debtor acted as a corporate guarantor for loans granted to M/s. Shri Vallabh Pittie South West Industries Ltd, the principal borrower. The date of default is stated as 01.06.2024, with the NPA date being 01.05.2022. The total amount in default by the principal borrower is Rs. 70,35,32,464.32/-, of which Rs.48,46,73,716.01/- is the principal amount. The Financial Creditor has provided various documents, including loan agreements, corporate guarantees, and statements of account, to support its claim. The principal borrower is

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority considered the documents and evidence provided by the

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The Financial Creditor demonstrated that the Corporate Debtor had defaulted on

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Central Bank of…
- **Respondents:** M/s SVP Textiles…

## Timeline

- **2014-10-08 — Power of At…**: Rajeev Kumar Jha, Chief Manager, was…
- **2015-04-29 — Corporate Gu…**: Deed of Corporate Guarantee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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