# In the matter of VEDANSH REAL ESTATE PRIVATE LIMITED

> NCLT judgment dated 2025-05-21. Citation: TCN-2025-NCLT-00057. Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 May 2025
- **Citation:** TCN-2025-NCLT-00057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vedansh-real-estate-private-limited-74a2766a

## Summary

### Background

Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Vedansh Real Estate Pvt Ltd, the Corporate Guarantor, due to a financial default of Rs. 175,96,47,674/- as of 22.03.2024. The application was filed on 03.01.2025. The default arose from credit facilities availed by the Principal Borrower, M/s Magnifico Minerals Private Limited, under a consortium arrangement with Central Bank of India as part of it. The Principal Borrower had executed a loan document on 25.06.2013 and made part payments. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued to the Principal Borrower, and proceedings were initiated against the Corporate Guarantors. The

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## Facts

Central Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Vedansh Real Estate Pvt Ltd, the Corporate Guarantor. The application was filed on 03.01.2025. The Corporate Guarantor is M/s Vedansh Real Estate Pvt. Ltd. (CIN: U70109DL2006PTC151469), incorporated on 01.08.2006, with an authorized capital of Rs. 3,10,00,000/- and a paid-up capital of Rs. 2,75,00,730/-, and is in the business of real estate. The default arose from credit facilities availed by M/s Magnifico Minerals Private Limited, the Principal Borrower (CIN: U51909DL2011PTC228884), including CC cum OD of Rs. 10,00,00,000/- and Buyers' Credit facility of Rs. 90 Crore,

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of …

**Ratio:** Section 18 of the Limitation Act states that an acknowledgment of present subsisting

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**Reasoning:** The Adjudicating Authority found that the settlement proposal dated 07.03.2022 given by

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**Interpretation:** The interpretation of Section 18 of the Limitation Act, as applied in the

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**Application:** In this case, the settlement proposal by the Principal Borrower and the

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## Parties

- **Judges:** Ramalingam…; RAVINDRA CHATURVED…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Vedansh Real…

## Timeline

- **2006-08-01 — Incorporation of…**: M/s Vedansh Real Estate…
- **2012-09-18 — Execution of Corporate…**: Corporate Guarantee executed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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