# In the matter of Leo Duct Engineers & Consultants Ltd. Vs. Canara Bank & Anr. CA (AT) No. 100-2017

> NCLAT judgment dated 2017-12-13. Citation: TCN-2017-NCLAT-00011. Leo Duct Engineers & Consultants Limited, the corporate applicant, filed an application under…

- **Court:** NCLAT
- **Order date:** 13 Dec 2017
- **Citation:** TCN-2017-NCLAT-00011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/leo-duct-engineers-consultants-ltd-vs-canara-bank-anr-ca-729eec63

## Summary

### Background

Leo Duct Engineers & Consultants Limited, the corporate applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). The NCLT, Mumbai Bench, dismissed the application, citing concerns about the impact on financial creditors who had already initiated proceedings under the SARFAESI Act. The NCLT believed that admitting the application would allow the corporate debtor to avoid repossession of immovable properties and provide undue protection to borrowers and guarantors.

## Facts

Leo Duct Engineers & Consultants Limited, as the corporate applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). Canara Bank and Standard Chartered Bank, the financial creditors, opposed the application. The Adjudicating Authority (NCLT, Mumbai Bench) dismissed the application, citing concerns about the impact on financial creditors who had already initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The NCLT believed that admitting the application would allow the corporate debtor to avoid repossession of immovable properties and provide undue protection to borrowers and guarantors. The NCLT noted that the corporate debtor appeared

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) was justified in rejecting the application under Section …

**Ratio:** The Adjudicating Authority must admit an application under Section 10 of the IBC if it is

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**Reasoning:** The NCLAT relied on its earlier decision in "M/s. Unigreen Global Private Limited

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**Interpretation:** Section 10 of the IBC provides an opportunity for a corporate debtor to

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**Application:** In this case, the NCLAT found that the NCLT had erred in rejecting the Section

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Respondents:** Leo Duct Engineers…; Canara…

## Timeline

- **2017-06-22 — NCLT Ord…**: NCLT, Mumbai Bench, passed an order in CP No. 1103/I&BP/NCLT/MAH/2017, which was later…
- **2017-12-01 — Unigreen Glob…**: Appellate Tribunal's judgement dated 1st December, 2017 in “M/s. Unigreen Global Private…

## 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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