# In the matter of Vaayu Infrastructure LLP C.P. (IB)-1951(MB)-2019

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02415. Vejas Power Projects Private Limited, the Financial Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02415
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vaayu-infrastructure-llp-cp-ib-1951mb-2019-08e71868

## Summary

### Background

Vejas Power Projects Private Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vaayu Infrastructure LLP, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to a default in repayment of a total amount of Rs. 2,68,88,44,690/-, including interest as on 01.01.2019. The Corporate Debtor stood as a corporate guarantor for loans provided by IL & FS Financial Services Limited to Wind World Wind Farm (MP) Private Limited. The facilities provided by IL & FS were later assigned to the Financial Creditor. The petition was initially admitted by the Tribunal, but the Hon'ble NCLAT set aside the admission order and remanded the matter back to the Tribunal for a

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## Facts

IL & FS Financial Services Limited provided financial assistance to Wind World Wind Farm (MP) Private Limited amounting to Rs. 100 Crores and 110 crores vide facility agreements dated 27.06.2014 and 24.09.2014 respectively. Vaayu Infrastructure LLP stood as a corporate guarantor for these loans, executing irrevocable and unconditional letters of guarantee. These facilities were later assigned to Vejas Power Projects Private Limited. There were defaults in repayment, leading the Financial Creditor to send a demand notice on 10.01.2018 and a recall notice on 29.01.2018 for Rs. 254,72,62,584/-. The Financial Creditor invoked the guarantee on 07.02.2018 and filed an application under Section 7 of the IBC. The Corporate Debtor argued that the transactions were advance

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## Issues and analysis

### Issue 1: Whether the transactions between IL & FS group, Wind World India Limited (WWIL), and its …

**Ratio:** The essential characteristic of a 'financial debt' is that it involves a disbursement

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**Reasoning:** The Tribunal reasoned that the amounts disbursed by IFIN to WWIL and its subsidiaries

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**Interpretation:** The interpretation of 'financial debt' under Section 5(8) of the IBC requires a

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

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Vejas Power…
- **Respondents:** Vaayu Infrastructu…

## Timeline

- **2014-06-27 — Facility Ag…**: IL & FS Financial Services Limited provided financial assistance of Rs. 100 Crores to…
- **2014-09-24 — Facility Ag…**: IL & FS Financial Services Limited provided financial assistance of Rs. 110 crores to…

## 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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