# In the matter of Vadera Tradelink Pvt. Ltd.

> NCLT judgment dated 2024-01-19. Citation: TCN-2024-NCLT-02987. Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Jan 2024
- **Citation:** TCN-2024-NCLT-02987
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vadera-tradelink-pvt-ltd-7435aa5e

## Summary

### Background

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vadera Tradelink Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a loan. The loan was originally sanctioned by Andhra Bank on 31.07.2019, which later amalgamated with Union Bank of India. The corporate debtor defaulted on 30.11.2019. The financial creditor filed an Original Application before the Debt Recovery Tribunal (DRT), Jaipur, which is pending adjudication. The corporate debtor raised objections, stating that the application filed by the financial creditor was not complying with the provisions of the Companies Act and subsequent rules. The corporate debtor also submitted that it is

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## Facts

Union Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vadera Tradelink Pvt. Ltd., the Corporate Debtor, seeking initiation of CIRP due to default in repayment of a loan. The loan was originally sanctioned by Andhra Bank on 31.07.2019, and later amalgamated with Union Bank of India. The credit limit was Rs. 12 Crores with an interest rate of 12.50% p.a. The Corporate Debtor defaulted on 30.11.2019. The outstanding amount as of 30.09.2022 was Rs. 16,40,80,949.54/-. The Financial Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 11.05.2021. The Corporate Debtor is registered under the SME segment and is engaged in setting up projects for construction of flats under

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is only required to determine the existence of a financial debt …

**Ratio:** The Adjudicating Authority is only required to determine the existence of a financial

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**Reasoning:** The Adjudicating Authority relied on the judgments of the Supreme Court, which clarified

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**Interpretation:** This means that the Adjudicating Authority's primary task is to ascertain

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**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor had

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Union Bank of…
- **Respondents:** VADERA TRADELINK…
- **Advocates:** Anubha…; Rajendra K.…; +1 more

## Timeline

- **2019-07-31 — Loan Sanc…**: Loan was sanctioned by…
- **2020-03-04 — Amalgama…**: Andhra Bank amalgamated…

## 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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