# In the matter of Blossoms Oil & Fats Ltd C.P (IB)- 23- 10- HBD- 2017

> NCLT judgment dated 2017-03-22. Citation: TCN-2017-NCLT-00944. The case pertains to a Company Petition, CP(IB) No.23/10/HDB/2017, filed by Blossoms Oils &…

- **Court:** NCLT
- **Order date:** 22 Mar 2017
- **Citation:** TCN-2017-NCLT-00944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blossoms-oil-fats-ltd-cp-ib-23-10-hbd-2017-9ceeda66

## Summary

### Background

The case pertains to a Company Petition, CP(IB) No.23/10/HDB/2017, filed by Blossoms Oils & Fats Ltd (BOFL/Company) under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 20.08.1998. Indian Overseas Bank issued a possession notice dated 09.03.2016 to the Company, directing it to pay dues under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI). Indian Bank also issued a demand notice dated 15.03.2016, classifying the loan account as a Non-Performing Asset since 30.09.2015. The company had

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## Facts

Blossoms Oils & Fats Ltd filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 20.08.1998, with a nominal share capital of Rs.4900.00 lakhs and a paid-up share capital of Rs.4513.00 lakhs. The company's main object is to extract, manufacture, process, trade, and refine edible and non-edible oils. As of 31.01.2016, the total outstanding amount in default, excluding the principal not due, was Rs.285.56 Crores with respect to the Secured Creditors and Rs.32.72 crores with respect to the Unsecured Creditors, totaling Rs.318.28 Crores. Indian Overseas Bank had issued a possession notice dated 09.03.2016, and Indian Bank issued a demand notice

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by Blossoms Oils & Fats Ltd under Section 10 of the …

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

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**Reasoning:** The NCLT considered the material on record and the submissions of the learned counsel for

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**Interpretation:** Section 10 provides a mechanism for corporate debtors facing financial distress

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**Application:** The NCLT applied Section 10 to the facts of the case, finding that Blossoms

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## Parties

- **Judges:** RavikumarDu…; Rajeswara Rao…
- **Respondents:** Blossoms Oils &…; Indian…

## Timeline

- **2016-03-09 — Possession Notice by…**: Indian Overseas Bank issued a possession notice to the Company, directing it to pay dues…
- **2016-03-15 — Demand Notice by Indian…**: Indian Bank issued a demand notice to the Company, classifying the loan account as a…

## 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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