# In the matter of Vindhyavasini Buildcon Private Limited

> NCLT judgment dated 2023-07-11. Citation: TCN-2023-NCLT-02582. The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLT-02582
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vindhyavasini-buildcon-private-limited-068a9a46

## Summary

### Background

The case involves a Company Petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by State Bank of India (Financial Creditor) against Vindhyavasini Buildcon Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was initially formed as an SPV for completion of a road construction project after the original concessionaire, Keti Buildcon Pvt. Ltd., defaulted. The Financial Creditor had granted a term loan facility to the Corporate Debtor in 2012, which the Corporate Debtor defaulted on, leading to its classification as NPA. A one-time settlement (OTS) was proposed and partially paid, but the Corporate Debtor defaulted on the balance amount.

## Facts

State Bank of India (SBI) filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Vindhyavasini Buildcon Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The claim was for Rs. 99,05,35,104.31 as of August 25, 2022, along with interest and other charges. The date of default was specified as July 24, 2021, and the date of NPA was August 10, 2013. Vindhyavasini Buildcon was formed as a special purpose vehicle (SPV) after Keti Construction Ltd., the original concessionaire for a road construction project, defaulted. SBI had granted a term loan to Vindhyavasini Buildcon in 2012, but the company defaulted on repayments starting May 11, 2013, leading to its account being classified as NPA. A one-time

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

…

**Reasoning:** The court noted that the Corporate Debtor had defaulted on its loan repayment obligations

…

**Interpretation:** Section 7 of IBC provides the mechanism for financial creditors to initiate

…

**Application:** The Corporate Debtor's failure to repay the loan and its default on the OTS

…

## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** State Bank of…
- **Respondents:** Vindhyavasini…; VINDHYAVASINI…
- **Advocates:** Uditi S…

## Timeline

- **2012-01-01 — Term Loan Facility…**: Financial Creditor granted a term loan…
- **2013-05-11 — Default in Re…**: The Corporate Debtor defaulted…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vindhyavasini-buildcon-private-limited-068a9a46