# 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-04778. 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-04778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/api-industries-pvt-ltd-cp-ib-no-77-10-nclt-ahm-2018-a092259a

## 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 the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The State Bank of India, a financial creditor, opposed the application, raising objections and questioning the bona fide of the application. The bank also argued that the corporate applicant was not functional/operative and had filed the application to frustrate recovery actions initiated by the bank. The corporate debtor had also initiated simultaneous proceedings before the Adjudicating Authority.

## Facts

A.P.I. Industries Private Limited, the corporate applicant, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). 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 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 has

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency and …

**Ratio:** The Adjudicating Authority is required to admit the application if it is satisfied that a

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**Reasoning:** The Adjudicating Authority observed that the petition filed by the Corporate Debtor was

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**Interpretation:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate

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**Application:** In this case, the Adjudicating Authority found that the application was

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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 A.P.I. Industries Private Limited resolved to file a petition…
- **2019-02-19 — Order Del…**: The order was delivered…

## 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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