# In the matter of Vidhata Metal Private Limited

> NCLT judgment dated 2024-02-06. Citation: TCN-2024-NCLT-02754. The case pertains to an application filed by Omkara Assets Reconstruction Private Limited under…

- **Court:** NCLT
- **Order date:** 6 Feb 2024
- **Citation:** TCN-2024-NCLT-02754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vidhata-metal-private-limited-d5611e0c

## Summary

### Background

The case pertains to an application filed by Omkara Assets Reconstruction Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Vidhata Metal Private Limited, the Corporate Debtor. The application is based on the Corporate Debtor's alleged default in payment of Rs. 42,46,49,737 as of 31.10.2023. The original lender, State Bank of India, had sanctioned various credit facilities to the Corporate Debtor, which were later assigned to ASREC (India) Limited and subsequently to Omkara Assets Reconstruction Private Limited. The Corporate Debtor's accounts were classified as Non-Performing Asset (NPA) on 31.03.2015. The applicant claims that the Corporate Debtor has defaulted

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## Facts

Vidhata Metal Private Limited (Corporate Debtor) defaulted on payments to its lender. State Bank of India (original lender) sanctioned credit facilities to the Corporate Debtor via arrangement letters dated 2012-04-10, 2012-06-26, and 2013-02-06. These facilities included a demand cash credit facility of Rs. 20,00,00,000, a term loan of Rs. 4,36,00,000, a letter of credit facility of Rs. 10,00,00,000, a bank guarantee of Rs. 2,00,00,000, and a forward contract of Rs. 12,50,000. The debt was assigned to ASREC (India) Limited on 2019-11-28 and subsequently to Omkara Assets Reconstruction Private Limited (Applicant) on 2022-03-17. The Corporate Debtor's accounts were classified as NPA on 2015-03-31. The original lender issued a notice under Section 13(4) of the SARFAESI

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is complete and …

**Ratio:** The Hon'ble Supreme Court in Innoventive Industries Ltd. vs. CICI Bank & Anr (2018) 1

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**Reasoning:** The Adjudicating Authority considered the averments made in the application and the

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**Interpretation:** This means that the Adjudicating Authority must verify the existence of a

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**Application:** The Adjudicating Authority found that the application was complete and that

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Omkara Assets…
- **Respondents:** Vidhata Metal…; M/S. VIDHATA…
- **Advocates:** Krish K…; Rashi A…; +4 more

## Timeline

- **2012-04-10 — Arrangement…**: State Bank of India sanctioned credit…
- **2012-06-26 — Arrangement…**: State Bank of India sanctioned credit…

## 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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