# In the matter of Yashkirti Tours and Travels Private Limited CP (IB) No. 301-AHM-2022

> NCLT judgment dated 2023-07-03. Citation: TCN-2023-NCLT-02716. Indian Bank (Erstwhile Allahabad Bank) filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLT-02716
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/yashkirti-tours-and-travels-private-limited-cp-ib-no-301-ahm-2022-a47ba421

## Summary

### Background

Indian Bank (Erstwhile Allahabad Bank) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Yash Kirti Tours and Travels Pvt. Ltd., the Corporate Guarantor of Siddhi Vinayak Logistics Ltd., for initiation of Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate guarantee provided by Yash Kirti Tours and Travels Pvt. Ltd. for the loans availed by Siddhi Vinayak Logistics Ltd. from Indian Bank. Siddhi Vinayak Logistics Ltd. defaulted on its loan repayments, leading to the account being declared as NPA. Indian Bank initiated recovery proceedings against both Siddhi Vinayak Logistics Ltd. and Yash Kirti Tours and Travels Pvt. Ltd. The NCLT had already initiated CIRP and liquidation process against

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## Facts

Indian Bank (formerly Allahabad Bank) extended credit facilities to M/s. Siddhi Vinayak Logistic Ltd. (the borrower). Yash Kirti Tours and Travels Pvt. Ltd. acted as the Corporate Guarantor for the loans availed by Siddhi Vinayak Logistics Ltd. Indian Bank sanctioned a term loan of Rs. 47.75 crores to the borrower on 2010-03-29 for purchasing 188 new commercial vehicles. The borrower again approached the bank for renewal of the existing term loan and sanction of an additional term loan facility for purchasing 405 new commercial vehicles. The bank renewed the existing term loan and sanctioned an additional term loan of Rs. 120.00 crores on 2012-11-23. The borrower defaulted in payment of the loan amount, and the account was declared as NPA on 2015-09-30. The total

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## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is …

**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 in terms of Section

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**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to

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**Application:** The Adjudicating Authority applied Section 7 of the IBC to the facts of the

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## Parties

- **Judges:** SHAMMI…; KAUSHALENDRA…
- **Appellants:** Indian…
- **Respondents:** Yash Kirti Tours…

## Timeline

- **1969-07-19 — Incorporation of…**: Indian Bank incorporated under the Banking Companies (Acquisition and Transfer of…
- **2001-06-18 — Incorporation of…**: Yash Kirti Tours and Travels Private Limited…

## 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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