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

> NCLT judgment dated 2023-02-09. Citation: TCN-2023-NCLT-04666. 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-04666
- **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-b82f64bd

## 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 alleged default in payment of a financial debt. The Corporate Debtor was part of 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, to initiate Corporate Insolvency Resolution Process (CIRP) against Vindhyavasini Toll Infrastructure Private Limited, the Corporate Debtor, due to a default in financial debt repayment. The Corporate Debtor, part of the Vindhyavasini Group, was involved in road and infrastructure projects, including the Keti Toll Infrastructure Project. 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. SBI issued a notice under

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor …

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

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**Reasoning:** The Corporate Debtor failed to make payments of an aggregate amount of Rs. 110.74 Crores

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**Interpretation:** The legal issue revolves around whether the Corporate Debtor's failure to pay

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**Application:** The Corporate Debtor's failure to pay the outstanding amount of Rs. 110.74

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## Parties

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

## Timeline

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

## 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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