# In the matter of Virat Global Logistics Private Limited

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-05296. A Company Petition was filed on 14.02.2020 under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-05296
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/virat-global-logistics-private-limited-a2f8c2eb

## Summary

### Background

A Company Petition was filed on 14.02.2020 under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Indus Container Lines Private Limited (Financial Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Virat Global Logistics Private Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted on loan repayments due on 22.02.2018 and 11.03.2018.

## Facts

Indus Container Lines Private Limited filed a petition under Section 7 of the IBC to initiate CIRP against Virat Global Logistics Private Limited.

The Corporate Debtor allegedly defaulted on loan repayments due on 22.02.2018 and 11.03.2018.

The Financial Creditor and Corporate Debtor executed a Revolving Loan Agreement (RLA) on 01.12.2015.

The Corporate Debtor issued Post Dated Cheques (PDC) for repayment of the loan with interest.

The Financial Creditor disbursed loans amounting to ₹80,00,000/- under the RLA.

The Corporate Debtor approached the Financial Creditor for an additional loan of ₹10,00,000/- on 27.04.2016.

A new RLA was executed on 28.04.2016 for a credit limit of ₹40,00,000/-.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** The application is maintainable if the

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**Reasoning:** The NCLT found a clear admission of debt by the Corporate Debtor and the Financial

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**Interpretation:** Section 7 of the I&B Code allows a Financial Creditor to initiate CIRP

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**Application:** The NCLT admitted the application as the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Indus Container…
- **Respondents:** Virat Global…
- **Other parties:** Harshad S.…
- **Advocates:** Rashid…; Sumi S…; +1 more

## Timeline

- **2020-02-14 — Filing of Company…**: Company Petition filed under Section 7 of the IBC by Indus Container Lines Private…
- **2015-12-01 — Revolving Loan…**: Both parties executed a…

## 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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