# In the matter of Antrix Diamond Exports Pvt. Ltd. Vs. Bank of India & Ors. CA (AT) No. 107-2017

> NCLAT judgment dated 2018-01-12. Citation: TCN-2018-NCLAT-00398. Antrix Diamond Exports Pvt Ltd, the corporate applicant, filed an application under Section…

- **Court:** NCLAT
- **Order date:** 12 Jan 2018
- **Citation:** TCN-2018-NCLAT-00398
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/antrix-diamond-exports-pvt-ltd-vs-bank-of-india-ors-ca-a916ffdd

## Summary

### Background

Antrix Diamond Exports Pvt Ltd, the corporate applicant, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of corporate insolvency resolution process. The National Company Law Tribunal (NCLT), Mumbai Bench, rejected the application. The corporate applicant challenged the NCLT's order, arguing that the Adjudicating Authority relied on irrelevant facts for adjudicating an application under Section 10 of the I&B Code. The NCLT noted that the corporate debtor offered immovable properties and personal guarantees as securities for loans and that initiating CIRP would scuttle SARFAESI proceedings. The NCLT viewed the application as an abuse of the process of law.

## Facts

Antrix Diamond Exports Pvt Ltd filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, for initiating a corporate insolvency resolution process. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected the application. The corporate applicant challenged the order, arguing that the Adjudicating Authority relied on irrelevant facts. The Adjudicating Authority noted that the corporate debtor had offered immovable properties and personal guarantees as securities for loans from banks. The Adjudicating Authority believed that initiating CIRP would scuttle SARFAESI proceedings and viewed the application as an abuse of the process of law. The corporate debtor owed more than Rs.428 crores to 10 banks forming the 'Joint

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the Section 10 application based on …

**Ratio:** Section 10 of the I&B Code and Form 6 prescribe the requirements for an application

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**Reasoning:** The appellate tribunal reasoned that the Adjudicating Authority erred in considering

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**Interpretation:** Section 10 of the I&B Code should be interpreted strictly, and the

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**Application:** In this case, the Adjudicating Authority considered the fact that the corporate

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## Parties

- **Judges:** S.J. Mukhop…
- **Respondents:** Antrix Diamond…; Bank of…

## Timeline

- **2017-06-20 — Impugned…**: The National Company Law Tribunal (NCLT), Mumbai Bench, passed the impugned order…
- **2017-01-01 — Appeal F…**: Antrix Diamond Exports Pvt Ltd filed an appeal before the National Company Law Appellate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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