# In the matter of Vindhyavasini Toll Infrastructure Private Limited CP (IB) 197-MB-2020

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04682. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Feb 2023
- **Citation:** TCN-2023-NCLT-04682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vindhyavasini-toll-infrastructure-private-limited-cp-ib-197-mb-2020-1ae67862

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by State Bank of India (the Financial Creditor) against Vindhyavasini Toll Infrastructure Private Limited (the Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP) due to default in payment of a financial debt. The Corporate Debtor was part of the Vindhyavasini Group and involved in construction, operation, and maintenance of road and infrastructure projects. Keti Toll Infrastructure Project was awarded a project for road construction, and the Financial Creditor sanctioned credit facilities. KETI failed to maintain financial discipline, and the project was transferred to the Corporate Debtor in 2012. The Financial Creditor sanctioned and

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## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Vindhyavasini Toll Infrastructure Private Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor defaulted on a financial debt. The outstanding amount was Rs. 110.74 Crores as of 30.11.2019. The initial default date was 31.05.2013, and the account was classified as a Non-Performing Asset (NPA) on 10.08.2013. The principal amount due was Rs. 46.96 Crores as of 31.07.2013, with interest and other charges totaling Rs. 63.78 Crores. The Corporate Debtor acknowledged its liability in balance sheets from 2016 to 2018 and submitted a compromise proposal for Rs. 250 Crores

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## 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

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**Reasoning:** The court noted that the Corporate Debtor had failed to repay the outstanding debt to the

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**Interpretation:** The provision of Section 7 is interpreted to mean that if a corporate debtor

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**Application:** The Corporate Debtor's failure to repay the debt, coupled with the Financial

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** State Bank of…
- **Respondents:** Vindhyavasini…
- **Advocates:** Arjun Sa…

## Timeline

- **2012-01-01 — Project Tran…**: KETI failed to maintain financial discipline, and the project was transferred to the…
- **2012-12-21 — Sanction…**: Financial Creditor sanctioned Term Loan to the Corporate Debtor vide Sanction Letter…

## 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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