# In the matter of Brown Multiwall Paper Bags Ltd. CP (IB) No. 243-Chd-Hry-2018

> NCLT judgment dated 2018-12-05. Citation: TCN-2018-NCLT-00189. The case pertains to an application filed by M/s Brown Multiwall Paper Bags Ltd. ('BMPBL'), the…

- **Court:** NCLT
- **Order date:** 5 Dec 2018
- **Citation:** TCN-2018-NCLT-00189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brown-multiwall-paper-bags-ltd-cp-ib-no-243-chd-hry-2018-1f381e95

## Summary

### Background

The case pertains to an application filed by M/s Brown Multiwall Paper Bags Ltd. ('BMPBL'), the Corporate Debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 28.08.1992. The petition was filed through Mr. R Ragunath, Director, authorized by a Board resolution dated 11.06.2018. The Corporate Debtor faced financial difficulties, including defaults to financial creditors like Karnataka Bank Limited (later assigned to Phoenix ARC Private Limited) and operational creditors. The application was initially found to have certain defects, which were subsequently rectified. The Adjudicating Authority considered the application and the documents submitted

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## Facts

Brown Multiwall Paper Bags Ltd. (BMPBL), the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). BMPBL was incorporated on 28.08.1992. The company's authorized share capital is ₹1,00,00,000/-, and its issued, subscribed, and paid-up capital is ₹65,00,000/-. The petition was filed by Mr. R Ragunath, a Director authorized by a Board resolution dated 11.06.2018. BMPBL had obtained financial facilities from Karnataka Bank Limited, which later assigned the debt to Phoenix ARC Private Limited. The company defaulted on its debt obligations to both financial and operational creditors. The total amount in default to operational creditors is

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## Issues and analysis

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

**Ratio:** Section 10 of the IBC, 2016, read with Rule 7 of the Insolvency and Bankruptcy

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**Reasoning:** The Adjudicating Authority considered the documents and information provided by the

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**Interpretation:** The completeness of the application is determined by adherence to the

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**Application:** In this case, the Corporate Debtor provided the necessary documents and

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** Brown Multiwall…

## Timeline

- **1992-08-28 — Incorporation of…**: Brown Multiwall Paper…
- **2015-12-28 — Assignment Ag…**: Karnataka Bank Limited assigned the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(5) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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