# In the matter of Vayam Technologies Limited IB-661(PB)-2021

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03525. DBS Bank India Limited (DBIL), the Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 25 Mar 2022
- **Citation:** TCN-2022-NCLT-03525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vayam-technologies-limited-ib-661pb-2021-5d88af8f

## Summary

### Background

DBS Bank India Limited (DBIL), the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Vayam Technologies Limited, the Corporate Debtor. The Financial Creditor had sanctioned working capital credit facilities to the Corporate Debtor, which were later renewed. The Corporate Debtor defaulted on its repayment obligations, leading to the filing of the petition. The Financial Creditor also obtained a Recovery Certificate from the Debt Recovery Tribunal (DRT).

## Facts

DBS Bank India Limited (DBIL) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Vayam Technologies Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). DBS Bank India Limited, incorporated on 17.03.2018, is the Financial Creditor. Vayam Technologies Limited, incorporated on 01.08.2000, is the Corporate Debtor. The Corporate Debtor had availed working capital credit facilities to the tune of Rs. 25 crores sanctioned on 01.08.2011 and renewed thereafter on 13.09.2012 and 22.11.2013 by the Financial Creditor under the Canara Bank Consortium. The Financial Creditor has been awarded Rs. 23,29,19,212.46/- along with interest @18% p.a. Vide Recovery Certificate No. 347/2019, on 24.07.2019, with effect from

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial …

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

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**Reasoning:** The court considered the documents and evidence presented by the Financial Creditor,

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** The court applied the provisions of Section 7 of the IBC to the facts of the

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** DBS Bank India…
- **Respondents:** Vayam Technologies…; M/s. Vayam…

## Timeline

- **2011-07-20 — Board Reso…**: Corporate Debtor passed necessary resolution at the meeting of its Board of Directors for…
- **2011-08-01 — Offer Le…**: Financial Creditor agreed to sanction the Working Capital Credit Facility of Rs. 25…

## 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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