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

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04704. 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-04704
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vindhyavasini-toll-infrastructure-private-limited-cp-ib-197-mb-2020-3234337b

## 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. The Financial Creditor had sanctioned and disbursed term loans to the Corporate Debtor in 2012. The Corporate Debtor defaulted in repayment on 31.05.2013, and the account was categorized as NPA on 10.08.2013.

## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vindhyavasini Toll Infrastructure Private Limited, the Corporate Debtor, due to a default in payment of a financial debt. The Corporate Debtor, part of the Vindhyavasini Group, was involved in road and infrastructure projects. SBI had sanctioned and disbursed term loans to the Corporate Debtor in 2012. The Corporate Debtor defaulted on 31.05.2013, leading to its account being classified as a Non-Performing Asset (NPA) on 10.08.2013. The total outstanding amount was Rs. 110.74 Crores as of 30.11.2019, including a principal amount of Rs. 46.96 Crores and interest and other

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in payment of its financial debt to the Financial Creditor, …

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court examined the loan agreements, sanction letters, and the Corporate Debtor's

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**Interpretation:** Section 7 of the IBC is interpreted to provide a mechanism for financial

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**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** State Bank of…
- **Respondents:** Vindhyavasini…; None App…

## Timeline

- **2012-01-01 — Loan Sanction and…**: The Financial Creditor sanctioned and…
- **2013-05-31 — Default in Re…**: The Corporate Debtor defaulted in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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