# In the matter of Veer Chemicals Private Limited

> NCLT judgment dated 2025-03-26. Citation: TCN-2025-NCLT-00306. Standard Capital Markets Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Mar 2025
- **Citation:** TCN-2025-NCLT-00306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/veer-chemicals-private-limited-43310194

## Summary

### Background

Standard Capital Markets Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Veer Chemicals Private Limited, the Corporate Debtor. The Corporate Debtor had sought loan facilities from Sammaan Capital Ltd. (later assigned to Standard Capital Markets Ltd.) for construction activities. A loan agreement was executed on 30.10.2018 for Rs. 150,00,00,000/-, and the amount was disbursed on 02.11.2018. The terms of the loan were later modified through addendum agreements. The Financial Creditor claimed that the Corporate Debtor defaulted on an EMI payment due on 05.10.2024, leading to the issuance of a demand notice on 10.11.2024. The Corporate Debtor sought an extension for

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## Facts

1. Sammaan Capital Ltd. (SCL), later assigned to Standard Capital Markets Ltd., provided loan facilities to Veer Chemicals Private Ltd. (CD) for construction projects.
2. A Loan Agreement was executed on 30.10.2018 for Rs. 150,00,00,000/-, disbursed on 02.11.2018.
3. The CD's sister concerns created a first-ranking mortgage in favor of SCL on 28.11.2020, securing land in Gurgaon.
4. On 01.10.2020, SCL and CD executed addendum agreements extending the loan term to 05.10.2025 and modifying payment terms.
5. On 01.10.2024, SCL assigned its rights to Standard Capital Markets Ltd.
6. On 05.10.2024, the CD allegedly defaulted on an EMI of Rs. 10,63,47,656/- towards principal and Rs. 1,32,93,457/- towards interest.
7. On 10.11.2024, the Financial Creditor (FC) issued a demand

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default as defined under Section 3(12) of the Insolvency …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when whole or any part

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**Reasoning:** The NCLT observed that the Corporate Debtor had admitted to defaulting on at least one

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**Interpretation:** The definition of 'default' under Section 3(12) is interpreted broadly to

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**Application:** The NCLT applied the definition of 'default' to the facts of the case, noting

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. CHARANJEET…
- **Appellants:** Standard Capital…
- **Respondents:** Veer Chemicals…
- **Advocates:** Manayar Ch…; Adithya Dev…; +2 more

## Timeline

- **2018-10-30 — Loan Agreement…**: Loan Agreement executed between Sammaan Capital Ltd. and Veer Chemicals Private Ltd. for…
- **2018-11-02 — Loan Disbur…**: Sammaan Capital Ltd. disbursed Rs.…

## 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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