# In the matter of Bharatbhai Vrajlalbhai Selani (Dev Cotex Pvt. Ltd.) CP (IB) No. 63-10-NCLT-AHM-2017

> NCLT judgment dated 2017-08-21. Citation: TCN-2017-NCLT-00559. The case involves an application filed by the Director of Dev Cotex Pvt. Ltd., Bharatbhai…

- **Court:** NCLT
- **Order date:** 21 Aug 2017
- **Citation:** TCN-2017-NCLT-00559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bharatbhai-vrajlalbhai-selani-dev-cotex-pvt-ltd-cp-ib-no-63-10-nclt-ahm-2017-e4bbfa9b

## Summary

### Background

The case involves an application filed by the Director of Dev Cotex Pvt. Ltd., Bharatbhai Vrajalbhai Selani, under the Insolvency and Bankruptcy Code, 2016, before the National Company Law Tribunal (NCLT), Ahmedabad Bench. The company's registered office is in Gondal, Rajkot District, Gujarat, with a paid-up share capital of Rs. 3,00,00,000. The State Bank of India is mentioned as the 'Financial Creditor' in Part-III of Form-6, along with four other 'Operational Creditors'. The Corporate Applicant stated that the company defaulted on a financial debt of Rs. 10,02,49,309.00 to the State Bank of India and Rs. 2,54,69,506/- to Operational Creditors.

## Facts

Dev Cotex Pvt. Ltd. filed an application under the Insolvency and Bankruptcy Code, 2016, authorized by its Director, Bharatbhai Vrajalbhai Selani, via a Board Resolution dated April 21, 2017. The company's registered office is in Gondal, Rajkot, Gujarat, with a paid-up share capital of Rs. 3,00,00,000. The company defaulted on financial debt to State Bank of India (SBI) amounting to Rs. 10,02,49,309.00 and to Operational Creditors amounting to Rs. 2,54,69,506.00. SBI had issued a notice under Section 13(2) of the SARFAESI Act on August 22, 2016, demanding repayment of Rs. 10,94,81,521.29. SBI also issued another notice on August 29, 2016, stating that the account was classified as 'NPA' on March 31, 2016. SBI filed Original Application No. 495 of 2016 before the Debt

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## Issues and analysis

### Issue 1: Whether the objections raised by the Financial Creditor regarding the non-submission of audited …

**Ratio:** The Adjudicating Authority determined that the objections raised by the Financial

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**Reasoning:** The Adjudicating Authority perused the documents submitted by the Corporate Debtor and

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**Interpretation:** The interpretation is that the Adjudicating Authority has the discretion to

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**Application:** In this specific case, the Adjudicating Authority found that the Corporate

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Bharatbhai…
- **Respondents:** Dev Cotex P…; State Bank of…

## Timeline

- **2016-03-31 — Account Classified as…**: State Bank of India classified the account of Dev Cotex Pvt. Ltd. as a Non-Performing…
- **2016-08-22 — SARFAESI…**: State Bank of India issued a notice under Section 13(2) of the SARFAESI Act, demanding…

## 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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