# In the matter of Alucast Auto Part Limited C.P. (IB) No. 121-BB-2020

> NCLT judgment dated 2020-06-09. Citation: TCN-2020-NCLT-01216. The case pertains to an application filed by M/s. Alucast Auto Parts Limited under Section 10…

- **Court:** NCLT
- **Order date:** 9 Jun 2020
- **Citation:** TCN-2020-NCLT-01216
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alucast-auto-part-limited-cp-ib-no-121-bb-2020-99732ec6

## Summary

### Background

The case pertains to an application filed by M/s. Alucast Auto Parts Limited under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The company claimed to be suffering significant losses and lacking assets. The company had taken loans from State Bank of India and Export-Import Bank of India, which were later transferred to Edelweiss Asset Reconstruction Company Limited. Due to recession and unforeseen circumstances, the account with State Bank of India became an NPA in 2012. A restructuring attempt by Edelweiss was revoked due to non-payment of dues. The company also pursued a One Time Settlement (OTS) with the bank, which was sanctioned but could not be fully paid due

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## Facts

M/s. Alucast Auto Parts Limited, a public limited company incorporated on May 9, 1995, filed an application under Section 10 of the IBC seeking to initiate CIRP against itself. The company's registered office is in Belgaum. Its nominal share capital is Rs. 28,00,00,000, and paid-up share capital is Rs. 15,62,40,790. The company is engaged in manufacturing automobile components. It had taken term and working capital loans from State Bank of India and Export-Import Bank of India (later transferred to Edelweiss Asset Reconstruction Company Limited). The account became an NPA on December 29, 2012. A restructuring attempt by Edelweiss was revoked on September 13, 2017, due to non-payment. The company approached the bank for a One Time Settlement (OTS) of Rs. 31,00,00,000,

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant, M/s. Alucast Auto Parts Limited, has committed a default …

**Ratio:** Section 10 of the IBC allows a Corporate Applicant to file an application for initiating

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**Reasoning:** The Adjudicating Authority considered the financial status of the Corporate Applicant,

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**Interpretation:** Section 10 of the IBC provides a mechanism for a corporate debtor to initiate

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**Application:** The Corporate Applicant demonstrated that it had defaulted on its financial

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** M/s. Alucast Auto…

## Timeline

- **1995-05-09 — Company Incor…**: M/s. Alucast Auto Parts…
- **2012-12-29 — Account Beco…**: The account of the Applicant with State Bank of…

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