# In the matter of Q Top Fab Engineering Pvt. Ltd.

> NCLT judgment dated 2026-04-06. Citation: TCN-2026-NCLT-00367. Q Top Fab Engineering Pvt Ltd filed a Company Petition under Section 10 of the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 6 Apr 2026
- **Citation:** TCN-2026-NCLT-00367
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/q-top-fab-engineering-pvt-ltd-5e0fe677

## Summary

### Background

Q Top Fab Engineering Pvt Ltd filed a Company Petition under Section 10 of the IBC, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's inability to pay its debts, citing financial distress caused by the COVID-19 pandemic.

## Facts

Q Top Fab Engineering Pvt Ltd filed a petition under Section 10 of the IBC, 2016, seeking initiation of CIRP.

The applicant cited financial distress due to the COVID-19 pandemic as the reason for its inability to pay debts.

Punjab National Bank (PNB) and Phoenix ARC Private Limited opposed the petition, alleging it was filed to stall recovery proceedings.

PNB had sanctioned credit facilities to the applicant, which were later enhanced.

PNB issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, after declaring the applicant's account as NPA.

Phoenix ARC Private Limited is an assignee of the loan originally granted by HDFC Bank Limited.

The applicant had also availed a business loan from HDFC Bank Limited.

…

## Issues and analysis

### Issue 1: Whether the Section 10 application was filed with a bona fide intent for resolution of insolvency …

**Ratio:** The Adjudicating Authority is duty-bound to examine whether the application has been

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**Reasoning:** The tribunal considered the financial position of the Corporate Debtor, the chronology of

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**Interpretation:** Section 10 of the IBC should not be used as a tool to circumvent legitimate

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**Application:** The tribunal found that the petition was not filed with the objective of

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Respondents:** Q Top Fab…; Punjab National…; +1 more
- **Other parties:** HDFC…; Avon Engin…
- **Advocates:** Nipun Si…; Dhruv Kumar S…; +2 more

## Timeline

- **19.01.2023 — Filing of Company…**: This Company Petition is filed on 19.01.2023 through e-mode by the Applicant- Q Top Fab…
- **03.03.2011 — Sanction of Credit…**: The Punjab National Bank sanctioned credit facilities of Rs 92.74 lakhs on 03.03.2011 and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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