# In the matter of Benara Automotives Pvt. Ltd. Company Petition (IB)No. 57-ALD-2019

> NCLT judgment dated 2020-01-29. Citation: TCN-2020-NCLT-02139. The case pertains to a Company Petition filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 Jan 2020
- **Citation:** TCN-2020-NCLT-02139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/benara-automotives-pvt-ltd-company-petition-ibno-57-ald-2019-87c5bd4b

## Summary

### Background

The case pertains to a Company Petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Benara Automotives Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed financial facilities from Kotak Mahindra Bank and Indusind Bank but failed to regularize the account, leading to its classification as a Non-Performing Asset (NPA) by the financial creditors. Indusind Bank had issued a notice under Section 13(2) of the SARFAESI Act, 2002.

## Facts

Benara Automotives Pvt. Ltd. filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. Benara Automotives Pvt. Ltd. had availed financial facilities from Kotak Mahindra Bank and Indusind Bank. Due to reasons beyond control, the Corporate Debtor failed to regularize its account, leading to its classification as NPA by the financial creditors. Indusind Bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, dated 18.08.2018. The Corporate Applicant submitted documents evidencing the default, including a copy of the SARFAESI notice, a demand notice from the Customs Department, and audited balance sheets. The Respondents were given an opportunity to be heard but did not file a reply. The application was

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor has committed a default as per Section 10 of the Insolvency and …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, mandates two essential

…

**Reasoning:** The Adjudicating Authority considered the documents submitted by the Corporate Applicant,

…

**Interpretation:** The legal principle is that if there is a debt and a default has occurred, the

…

**Application:** In this case, the Corporate Debtor had failed to regularize its account with

…

## Parties

- **Judges:** Justice(Retd)…
- **Respondents:** Benara Automotives…

## Timeline

- **2018-08-18 — SARFAESI…**: Indusind Bank issued a notice under…
- **2018-11-28 — Board Reso…**: Board resolution passed for filing the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/benara-automotives-pvt-ltd-company-petition-ibno-57-ald-2019-87c5bd4b