# Om Prakash Somani & Ors. vs. VMN Stones Private Limited

> NCLT judgment dated 2026-07-01. Citation: TCN-2026-NCLT-00721. A petition was filed by Om Prakash Somani & Ors. (Financial Creditors/Petitioners) against VMN…

- **Court:** NCLT
- **Order date:** 1 Jul 2026
- **Citation:** TCN-2026-NCLT-00721
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/om-prakash-somani-ors-vs-vmn-stones-private-limited-4oc62

## Summary

### Background

A petition was filed by Om Prakash Somani & Ors. (Financial Creditors/Petitioners) against VMN Stones Private Limited (Corporate Debtor/Respondent) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditors sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to an alleged default in the repayment of a substantial outstanding loan amount. The Financial Creditors held 60% of the Corporate Debtor's paid-up share capital and had advanced significant unsecured loans. A Settlement Agreement dated 28.12.2023 was executed for the transfer of shareholding and settlement of outstanding loans, but the Corporate Debtor allegedly failed to make full payments as per the schedule.

## Facts

The petition, CP No. (IB)- 111/7JPR/2024, was filed by Mr. Om Prakash Somani & Ors. (Financial Creditor/Petitioner) against VMN Stones Private Limited (Corporate Debtor/Respondent) under Section 7 of the IBC, 2016.

The petition seeks initiation of CIRP due to an alleged default in repayment of an outstanding loan amount.

VMN Stones Private Limited was incorporated on 08.11.2019, with its registered office in Jaipur, Rajasthan.

The Financial Creditors held 60% of the paid-up share capital in the Corporate Debtor, while Mr. Abhishek Periwal and Mr. Vijay Periwal (directors/promoters) held the remaining 40%.

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## Issues and analysis

### Issue 1: Whether the transaction between the Financial Creditors and the Corporate Debtor constitutes a …

**Ratio:** The NCLT held that the Agreement dated 28.12.2023 consciously preserved the distinction

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**Reasoning:** The Agreement was not drafted as a pure share purchase agreement but explicitly

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**Interpretation:** The NCLT interpreted the Agreement and the parties' conduct as maintaining the

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**Application:** Given the explicit recognition of loan liabilities, separate accounting, and

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## Parties

- **Judges:** Reeta Kohli,…; Kavita Bhatnagar,…
- **Appellants:** Om Prakash…; Namita S…; +6 more
- **Respondents:** VMN Stones…
- **Other parties:** Abhishek P…; Vijay Pe…; +3 more
- **Advocates:** Prabhansh Sharma,…; Nagendra Singh…; +1 more

## Timeline

- **2019-11-08 — Incorporation of…**: VMN Stones Private…
- **2022-10-20 — Commencement of…**: The Marble/Granite processing plant, funded by the financial debt, commenced commercial…

## 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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