# In the matter of Asis Plywood Limited Company Petition no. (IB)-434-(ND)-2017

> NCLT judgment dated 2017-11-21. Citation: TCN-2017-NCLT-00152. The case pertains to an application filed by M/s Asis Plywood Limited under Section 10 of the…

- **Court:** NCLT
- **Order date:** 21 Nov 2017
- **Citation:** TCN-2017-NCLT-00152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asis-plywood-limited-company-petition-no-ib-434-nd-2017-0869a590

## Summary

### Background

The case pertains to an application filed by M/s Asis Plywood Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The applicant company, incorporated in 1956, faced financial difficulties, leading to its net worth becoming negative. It had availed credit facilities from Janakalyan Sahakari Bak Ltd. (JSBL) and State Bank of India (SBI). The company also provided a corporate guarantee for a loan availed by M/s Shirdi Industries Limited. Due to defaults, SARFAESI actions and recovery proceedings were initiated against the applicant. The financial creditor, Jan Kalyan Sahakari Bank, objected to the application, arguing that it was filed to defeat a recovery

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## Facts

M/s Asis Plywood Limited, the applicant, is a company incorporated under the Companies Act, 1956. The company filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company had availed credit facilities from Janakalyan Sahakari Bak Ltd. (JSBL) and State Bank of India (SBI). The company also provided a corporate guarantee for a loan availed by M/s Shirdi Industries Limited. Due to defaults in repayment, SARFAESI actions and recovery proceedings were initiated against the applicant. The financial creditor, Jan Kalyan Sahakari Bank, objected to the application, arguing that it was filed to defeat a recovery certificate issued by the Assistant Registrar/Deputy

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## Issues and analysis

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

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to

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**Reasoning:** The Adjudicating Authority examined the application and the documents filed by the

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

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

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## Parties

- **Judges:** Ina Mal…; S. K. MOH…
- **Respondents:** M/s Asis Plywood…; Jan Kalyan…
- **Advocates:** Rajesh…; Aditya Na…; +2 more

## Timeline

- **2017-11-21 — Judgment De…**: The judgment was…
- **2017-10-12 — Board Resolut…**: Certified copy of the Board resolution dated 12.10.2017 of the applicant, M/s Asis…

## 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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