# In the matter of Vishal Structurals Private Limited

> NCLT judgment dated 2025-03-12. Citation: TCN-2025-NCLT-00371. Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 12 Mar 2025
- **Citation:** TCN-2025-NCLT-00371
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vishal-structurals-private-limited-3088bdd1

## Summary

### Background

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Vishal Structurals Private Limited, the Corporate Debtor. The application was filed due to the Corporate Debtor's default on various credit facilities. The Financial Creditor sought the appointment of an Interim Resolution Professional (IRP) and the initiation of a moratorium.

## Facts

Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Vishal Structurals Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor defaulted on various credit facilities sanctioned by the Financial Creditor. The first date of default was 30.05.2022, and the last date of default was 17.11.2022. The account of the Corporate Debtor was declared as NPA on 28.07.2022. The total amount in default was Rs. 62,48,23,747.86 as of 26.09.2024, with Rs. 51,98,73,225.73 towards principal outstanding and the remaining amount towards interest. The Financial Creditor held various securities, including hypothecation of stock and book

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of …

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

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**Reasoning:** The Adjudicating Authority found that the application was complete, containing all

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**Interpretation:** The completeness of the application is a prerequisite for initiating CIRP. The

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**Application:** The application was deemed complete as it included details of the credit

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Bank of…
- **Respondents:** Vishal Structurals…

## Timeline

- **2022-05-30 — First Date of…**: The first date of default…
- **2022-07-28 — Account Decla…**: The account of the Corporate Debtor was…

## 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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