# in the matter of Vijay Mining Private Limited CP (IB) No.29-7-HDB-2022

> NCLT judgment dated 2022-10-11. Citation: TCN-2022-NCLT-00783. SREI Equipment Finance Ltd, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 11 Oct 2022
- **Citation:** TCN-2022-NCLT-00783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vijay-mining-private-limited-cp-ib-no29-7-hdb-2022-beea4b25

## Summary

### Background

SREI Equipment Finance Ltd, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Vijaya Mining Private Limited, the Corporate Debtor, due to alleged default in repayment of a loan. The Financial Creditor claimed that the Corporate Debtor failed to repay installments despite receiving loan disbursements. The Corporate Debtor, however, contended that it had repaid the principal amount of Rs. 10 crores on the same day the loan was availed.

## Facts

SREI Equipment Finance Ltd (Financial Creditor) extended credit facilities to M/s Vijaya Mining Private Limited (Corporate Debtor) through a loan agreement dated 2020-03-05, amounting to Rs. 10 crores. The Corporate Debtor allegedly failed to make repayments, leading the Financial Creditor to issue a demand notice on 2021-12-09 for Rs. 13,76,53,539/-. The Corporate Debtor claimed to have repaid Rs. 10 crores on 2020-03-18, the same day the loan was availed. The Financial Creditor did not disclose this repayment in its application under Section 7 of the IBC. The Corporate Debtor argued that the Financial Creditor's claim for interest and other charges was unsustainable, given the repayment of the principal amount. The Financial Creditor contended that the repayment was

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## Issues and analysis

### Issue 1: Whether a financial debt claimed as due and …

**Ratio:** The trigger for a financial creditor's application under Section 7 of the IBC is the

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**Reasoning:** The NCLT found that the Financial Creditor had suppressed the fact that the Corporate

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**Interpretation:** Section 7 of the IBC requires the financial creditor to demonstrate the

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**Application:** In this case, the NCLT held that the Financial Creditor had failed to establish

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** SREI EQUIPMENT…
- **Respondents:** Vijaya Mining…; M/s. Vijaya…
- **Advocates:** Srikanth Ha…; D. Narendr…

## Timeline

- **2020-03-05 — Loan Agreeme…**: SREI Equipment Finance Ltd extended credit facilities to M/s Vijaya Mining Private…
- **2020-03-18 — Repayment by Corporate…**: M/s Vijaya Mining Private Limited claimed to have repaid Rs. 10 crores to SREI Equipment…

## 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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