# In the matter of YYY INDUSTRIES PRIVATE LIMITED

> NCLT judgment dated 2026-02-25. Citation: TCN-2026-NCLT-00190. Andhra Pradesh State Financial Corporation filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 25 Feb 2026
- **Citation:** TCN-2026-NCLT-00190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/yyy-industries-private-limited-00f7d8fd

## Summary

### Background

Andhra Pradesh State Financial Corporation filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against YYY Industries Private Limited, alleging default in repayment of a financial debt.

## Facts

Andhra Pradesh State Financial Corporation sanctioned a term loan of Rs. 7,50,00,000/- to YYY Industries Private Limited, out of which Rs. 746.55 lakhs was disbursed.

The Corporate Debtor defaulted in repayment, leading to the loan account being classified as NPA on 12.04.2018.

The Applicant issued a demand notice on 08.11.2018 for Rs. 1006.18 lakhs, but the Corporate Debtor failed to liquidate the outstanding dues.

The Corporate Debtor acknowledged its liability in letters dated 07.01.2019 and 07.11.2022 and made part payments.

The Financial Creditor recommended Mr. Kalvakolanu Murali Krishna Prasad as the Interim Resolution Professional.

The Corporate Debtor contended that the NPA classification was premature as it was before the expiry of the moratorium period.

…

## Issues and analysis

### Issue 1: Whether a 'Financial Debt' of a sum exceeding rupees one crore is due and payable by the Corporate …

**Ratio:** The NCLT observed that the Financial Creditor sanctioned a Term Loan of Rs. 7,50,00,000/-

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**Reasoning:** The Corporate Debtor admitted that financial facilities were obtained from the Financial

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**Interpretation:** There is no dispute regarding the availed loan facility and therefore, there

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**Application:** The NCLT held that a financial debt exceeding Rs. 1 crore was due and payable

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Andhra Pradesh…
- **Respondents:** YYY Industries…
- **Other parties:** Kalvakolanu…
- **Advocates:** R. Rajendra…; Peri Prab…; +1 more

## Timeline

- **2014-12-26 — Incorporation of…**: YYY Industries Private…
- **2016-06-16 — Sanction…**: Financial facilities were obtained from the Applicant under Sanction Letter dated…

## 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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