# In the matter of V.G.I. Pharma Private Limited

> NCLT judgment dated 2024-12-03. Citation: TCN-2024-NCLT-00107. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Dec 2024
- **Citation:** TCN-2024-NCLT-00107
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vgi-pharma-private-limited-f49caadf

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Omkara Assets Reconstruction Private Limited (Financial Creditor) against V.G.I. Pharma Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repayment of loans. The original lender, Akola Urban Co-op Bank Ltd., had sanctioned various term loan facilities and a funded interest term loan to the Corporate Debtor. Subsequently, the original lender assigned all debts due and payable by the Corporate Debtor to Omkara Assets Reconstruction Private Limited vide an Assignment Agreement dated 28.09.2021.

## Facts

Akola Urban Co-op Bank Ltd. (Original Lender) sanctioned Term Loan facility – I for Rs.3 Crore, Term Loan facility - II for Rs.5.50 Crore, and Hypothecation Limit for Rs.1.75 Crore to V.G.I. Pharma Private Limited (Corporate Debtor). The Original Lender sanctioned another Funded Interest Term Loan for Rs.2,82,39,325/- vide Sanction Letter dated 28.03.2014. The total amount of default by the Corporate Debtor is Rs.38,20,28,712.47/-. The date of default is 30.04.2014, when the Corporate Debtor first defaulted in repayment and the account was classified as NPA. The Original Lender issued demand notices dated 16.10.2014 and 02.05.2017, but received no response. The Corporate Debtor addressed OTS Proposals dated 03.07.2019 and 01.06.2021 acknowledging liabilities. The

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## Issues and analysis

### Issue 1: Whether Mr. Nitin Ingle, Assistant Vice President of …

**Ratio:** Section 7(1) of the IBC provides for filing application for initiating CIRP by a

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**Reasoning:** The FC submitted a copy of the Board Resolution passed on 29.06.2022, evidencing lawful

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**Interpretation:** Section 7(1) of the IBC allows a financial creditor to initiate CIRP either

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**Application:** The Board Resolution authorized Mr. Nitin Ingle to represent the FC before

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Omkara Assets…
- **Respondents:** V.G.I. PHARMA…

## Timeline

- **2014-03-28 — Sanction Lett…**: Original Lender sanctioned Funded Interest Term Loan (FITL) vide Sanction Letter dated…
- **2014-04-30 — Date of D…**: The date of default as mentioned in Part-IV of the Application is 30.04.2014 i.e., the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 179 — Adjudicating Authority for individuals and…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-179)

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