# In the matter of VICTOR BUILDWEL PRIVATE LIMITED

> NCLT judgment dated 2025-04-07. Citation: TCN-2025-NCLT-00232. SREI Equipment Finance Limited, the Financial Creditor/Applicant, filed a petition under…

- **Court:** NCLT
- **Order date:** 7 Apr 2025
- **Citation:** TCN-2025-NCLT-00232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/victor-buildwel-private-limited-6700f7dd

## Summary

### Background

SREI Equipment Finance Limited, the Financial Creditor/Applicant, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Victor Buildwel Private Limited, the Corporate Debtor/Respondent. The Corporate Debtor sought credit facilities from the Financial Creditor for land development, which were extended over time. These facilities were secured through a mortgage of leasehold land. The credit facilities were later restructured, resulting in a term loan facility. The Corporate Debtor also provided an undertaking to obtain necessary permissions for the mortgage and to avoid creating further encumbrances. The Corporate Debtor allegedly defaulted on its obligations, leading to

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## Facts

SREI Equipment Finance Limited extended credit facilities to Victor Buildwel Private Limited for land development, secured by a mortgage on leasehold land. The facilities were restructured into a term loan of Rs. 91,00,00,000/- sanctioned on 2020-07-01. Victor Buildwel undertook to obtain mortgage permission from Greater Noida Industrial Development Authority (GNIDA) within 90 days and clear GNIDA dues. Victor Buildwel failed to obtain permission and clear dues, violating the undertaking. SREI issued a default notice on 2023-08-30 and a loan recall notice on 2023-11-21 for Rs. 140,23,76,356/-. Victor Buildwel proposed a One Time Settlement (OTS) on 2024-04-10, which SREI did not respond to. Victor Buildwel argued the default was due to GNIDA security perfection issues,

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## Issues and analysis

### Issue 1: Whether the application preferred by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** Section 7(1) of the IBC allows a Financial Creditor to file an application for initiating

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 7 of the IBC and the

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

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**Application:** In this case, the Financial Creditor, SREI Equipment Finance Limited, provided

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## Parties

- **Judges:** SH. ASHOK KUMAR…; Reena Sinh…
- **Appellants:** SREI Equipment…
- **Respondents:** Victor Buildwel…

## Timeline

- **2015-03-22 — Sanction of Credit…**: SREI Equipment Finance Limited sanctioned a credit facility of Rs.60,00,00,000/- to…
- **2018-09-25 — Sanction of Credit…**: SREI Equipment Finance Limited sanctioned a credit facility of Rs.5,00,00,000/- to Victor…

## 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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