# In the matter of BM Jain Metallik Pvt. Ltd CP No. 1352-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2017-10-18. Citation: TCN-2017-NCLT-00269. M/S. BM Jain Metallik Pvt. Ltd. filed a petition on 04.09.2017 under Section 10 of the…

- **Court:** NCLT
- **Order date:** 18 Oct 2017
- **Citation:** TCN-2017-NCLT-00269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bm-jain-metallik-pvt-ltd-cp-no-1352-ibc-nclt-mb-mah-2017-72ca4ff3

## Summary

### Background

M/S. BM Jain Metallik Pvt. Ltd. filed a petition on 04.09.2017 under Section 10 of the Insolvency & Bankruptcy Code 2016 to declare itself insolvent. The company was incorporated in 2012 to carry on the business of ferrous and nonferrous founders, extrusion, castings, machining, smelting, fabrication, forging of all types of ferrous and nonferrous metals, mechanical and electrical engineers, steel markers and steel converters of establishing electrical furnace for manufacture of ferro alloys and special steels and all other kinds of trading and manufacturing of auto, ancillary, machinery, engineering goods and all other metals. Credit facilities were earlier obtained from the State Bank of India in 2010 by the erstwhile firm namely M/s Bhavarlal Mangilal Jain,

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## Facts

M/S. BM Jain Metallik Pvt. Ltd. filed a petition under Section 10 of the Insolvency & Bankruptcy Code 2016 to declare itself insolvent. The company was incorporated in 2012. The Corporate Debtor has defaulted in payment to its Financial Creditor, State Bank of India. The Bank had sanctioned a loan to the erstwhile firm and taken over by Corporate Debtor on 19.01.2010. The total outstanding debt is ₹3,000.33/- (in lacs) (Secured 2951.40/- + unsecured 48.93/-). The Petitioner has placed on record a resolution dated 26th April, 2017 of Board authorising one of the Director to file application under section 10 of Insolvency and Bankruptcy Code. The evidences on record have thus established that there was a "Debt" and admittedly there was a "Default"

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor has defaulted in payment of its debt to the Financial Creditor, State …

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

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**Reasoning:** The Tribunal examined the financial records and found that the Corporate Debtor had

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** In this case, the Corporate Debtor's default in payment to the Financial

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** Prachi Wa…
- **Respondents:** M/S. BM Jain…

## Timeline

- **2010-01-19 — Loan Sanc…**: The Bank (Financial Creditor) had sanctioned a loan to the erstwhile firm and taken over…
- **2012-09-04 — Conversion to Private…**: M/s Bhavarlal Mangilal Jain was converted into Private Limited M/s BM Jain Metallik Pvt.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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