# In the matter of API Industries Pvt. Ltd. C.P. (IB) No. 77-10-NCLT-AHM-2018

> NCLT judgment dated 2019-02-19. Citation: TCN-2019-NCLT-04785. A.P.I. Industries Private Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 19 Feb 2019
- **Citation:** TCN-2019-NCLT-04785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/api-industries-pvt-ltd-cp-ib-no-77-10-nclt-ahm-2018-538ff00f

## Summary

### Background

A.P.I. Industries Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was filed in statutory form No. 6 as prescribed by sub-rule (1) of Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Board of Directors of A.P.I. Industries Private Limited had resolved to file the petition in their meeting held on January 22, 2018. The company is registered under the Companies Act and has a registered office in Bhavnagar, Gujarat, with a paid-up share capital of Rs. 350.00 lacs. The State Bank of India, being a financial creditor, raised objections to the application, contending that the petition was

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## Facts

A.P.I. Industries Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company's board of directors resolved to file the petition on January 22, 2018. The company has a registered office in Bhavnagar, Gujarat, with a paid-up share capital of Rs. 350.00 lacs. The company has financial creditors, including State Bank of India, with a total debt of Rs. 34,05,84,774/-. The company also has operational creditors, including AL Hawai Co LLC, Equate Petrochemicals Co. KSCC, and Hardware Trading Corporation, with significant outstanding debts. The company has other deposits to the extent of Rs. 20,47,57,187/- and statutory liabilities of Rs. 18,51,966/-. The company also

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## Issues and analysis

### Issue 1: Whether the application filed by A.P.I. Industries Private Limited under Section 10 of the …

**Ratio:** The ratio is that if the adjudicating authority is satisfied that a default has occurred

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**Reasoning:** The Adjudicating Authority reasoned that the petition filed by A.P.I. Industries Private

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Respondents:** A.P.I. Industries…; State Bank of…

## Timeline

- **2018-01-22 — Board Reso…**: The Board of Directors of M/s. API Industries Private Limited resolved to file a petition…
- **2019-02-19 — Order Del…**: Order delivered on 19th February, 2019, admitting the petition under Section 10(4)(a) of…

## 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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