# Piyush Securities Private Limited vs. M/s SHREE VAISHANAVI ISPAT LIMITED

> NCLT judgment dated 2026-10-14. Citation: TCN-2026-NCLT-01208. Piyush Securities Private Limited (Financial Creditor) filed a Section 7 IBC petition against…

- **Court:** NCLT
- **Order date:** 14 Oct 2026
- **Citation:** TCN-2026-NCLT-01208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/shree-vaishanavi-ispat-limited-5b7s0

## Summary

### Background

Piyush Securities Private Limited (Financial Creditor) filed a Section 7 IBC petition against M/s Shree Vaishnavi Ispat Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, a Non-Banking Financial Institution, disbursed an inter-corporate loan of Rs. 4 crores to the Corporate Debtor in September 2022, with an agreed interest rate of 15% per annum compounded monthly, repayable on demand. Despite the absence of a formal written agreement, the transaction was evidenced by bank statements, ledger accounts, and the Corporate Debtor's balance sheets. The Corporate Debtor defaulted on repayment, with an outstanding principal of Rs. 3.50 crores and accrued interest of Rs. 2,02,52,948/- as of 31.12.2025. The Corporate

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## Facts

Piyush Securities Private Limited (Applicant/Financial Creditor) filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Shree Vaishnavi Ispat Private Limited (Respondent/Corporate Debtor).

The Financial Creditor is a Non-Banking Financial Institution engaged in trading, investment, and financing.

Mr. Rajendra Kumar Sethia, Director of the applicant, was duly authorized to file the application for initiation of insolvency resolution process.

The Corporate Debtor was incorporated on 13.04.2005, with its registered office in Durgapur, West Bengal.

Around September 2022, the Corporate Debtor approached the Financial Creditor seeking inter-corporate loans for business requirements.

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## Issues and analysis

### Issue 1: Whether the present Company Petition filed by Piyush Securities Private Limited against M/s SHREE …

**Ratio:** An application under Section 7 of the Code is maintainable if there is a debt and a

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**Reasoning:** The Financial Creditor disbursed Rs. 4 crores, and the outstanding principal and interest

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**Interpretation:** Section 4 of the IBC sets the pecuniary threshold for initiating CIRP, which

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**Application:** Given that the total outstanding amount (principal Rs. 3.50 crores plus

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## Parties

- **Judges:** Labh S…; Rekha K…
- **Appellants:** Piyush Securities…
- **Respondents:** M/s SHREE…
- **Other parties:** Rajendra Kumar…; Sh. Hansraj…
- **Advocates:** Urmila Chak…; Aditya Chak…; +3 more

## Timeline

- **2022-09-XX — Corporate Debtor…**: The Corporate Debtor approached the Financial Creditor seeking financial assistance in…
- **2022-09-22 — Loan Disbur…**: The Financial Creditor disbursed Rs. 4,00,00,000/- to the Corporate Debtor through…

## 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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