# In the matter of VS Realtech Private Limited

> NCLT judgment dated 2025-04-01. Citation: TCN-2025-NCLT-00280. Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 1 Apr 2025
- **Citation:** TCN-2025-NCLT-00280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vs-realtech-private-limited-7a4168ed

## Summary

### Background

Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s VS Realtech Pvt. Ltd., the Corporate Debtor. The application stems from a financial debt extended to M/s Suryansh Healthcare Private Limited, for which M/s VS Realtech Pvt. Ltd. acted as a corporate guarantor. The loan was intended for setting up a hospital in Moradabad. The account of the Principal Borrower slipped into NPA on 29.09.2015, and the total amount due as of 29.02.2024 was Rs. 40,86,16,723.65. The Corporate Debtor opposed the application, alleging fraud, fabrication of records, and siphoning of funds in the loan disbursement process.

## Facts

Canara Bank extended a financial facility to M/s Suryansh Healthcare Private Limited for setting up a 102-bedded hospital at Moradabad. M/s VS Realtech Pvt. Ltd. acted as a corporate guarantor for the loan. The loan was sanctioned on 22.05.2013, with a term loan of Rs. 20,22,00,000. The account of the Principal Borrower slipped into NPA on 29.09.2015. As of 29.02.2024, the total amount due was Rs. 40,86,16,723.65. The debt was secured by hypothecation of plant, machinery, equipment, computers, printers, UPS, fittings, fixtures, and other assets, as well as an equitable mortgage of project land. The Corporate Debtor, M/s VS Realtech Pvt. Ltd., provided a corporate guarantee to repay the loan. The Corporate Debtor opposed the CIRP application, alleging fraud, fabrication

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## Issues and analysis

### Issue 1: Whether the board resolution authorizing the …

**Ratio:** The Companies Act, 2013, specifies the quorum requirements for board meetings. A

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**Reasoning:** The NCLT found that the resolution was signed by the directors who participated in the

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**Interpretation:** The validity of a board resolution depends on compliance with the quorum

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**Application:** The NCLT applied the provisions of the Companies Act, 2013, to determine that

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## Parties

- **Judges:** SH. ASHOK KUMAR…; Reena Sinh…
- **Appellants:** Canara…
- **Respondents:** M/s VS Realtech…

## Timeline

- **2013-05-22 — Loan San…**: Canara Bank sanctioned a term loan of Rs. 20,22,00,000 to M/s Suryansh Healthcare Private…
- **2015-09-29 — Account decla…**: The account of the Principal Borrower, M/s Suryansh Healthcare Private Limited, 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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