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Informist, Tuesday, Sept. 8, 2026

 

NEW DELHI – The Amaravati bench of the National Company Law Tribunal Tuesday admitted a petition by Srei Equipment Finance Ltd. to start insolvency proceedings against Vijay Mining & Infra Corp. Pvt. Ltd. for unpaid dues of INR 1.27 billion. The tribunal appointed Prakul Thadi as the interim resolution professional of Vijay Mining to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.

 

"...we are of the considered view that there is a financial debt extended by the financial creditor to the corporate debtor and there is a default in repayment thereof, when it became due and payable," the tribunal said. The amount in default exceeds the minimum threshold limit of INR 10 million prescribed under the 2016 Code. Accordingly, the insolvency petition filed under Section 7 of the 2016 Code is maintainable, and the invocation of the provisions of the insolvency law by the financial creditor is in accordance with the law, the tribunal said.

 

Vijay Mining had availed INR 1.09 billion from Srei Equipment Finance, a non-banking financial company. It had executed ten deeds of hypothecation to secure credit. However, the company failed to maintain financial discipline to repay them, which resulted in periodic restructuring of the loans.

 

On Vijay Mining's failure to make repayments and at the company's request, Srei Equipment Finance and the corporate debtor entered into terms of settlement in 2020, wherein a settlement amount of INR 550 million was agreed upon towards the total outstanding debt. As per the terms, the first tranche of payment was to be made by Mar. 31, 2021. However, Vijay Mining failed to make the payment and all subsequent payments. Consequently, Srei Equipment moved the tribunal to start insolvency proceedings against Vijay Mining.

 

Srei Equipment Finance along with Srei Infrastructure Finance Ltd. has been taken over by National Asset Reconstruction Co. Ltd. through a corporate insolvency resolution process. Vijay Mining, a Vijay group company, specialises in mining, excavation, construction, and infrastructure operations.  End

 

Reported by Surya Tripathi

Edited by Shubhayan Bhattacharya

 

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