# In the matter of Burn Standard Co. Ltd.

> NCLT judgment dated 2017-05-31. Citation: TCN-2017-NCLT-00836. The case pertains to a Company Petition (IB) No.244/KB/2017 filed under Section 10 of the…

- **Court:** NCLT
- **Order date:** 31 May 2017
- **Citation:** TCN-2017-NCLT-00836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/burn-standard-co-ltd-62097b9b

## Summary

### Background

The case pertains to a Company Petition (IB) No.244/KB/2017 filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Burn Standard Co. Ltd., the Corporate Debtor/Corporate Applicant, before the National Company Law Tribunal (NCLT), Kolkata Bench. The application was submitted in Form 6 under Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, supported by an affidavit to initiate the Corporate Insolvency Resolution Process (CIRP). The applicant stated that the reference made to the BIFR stood abated due to the SICA Repeal Act and that they were at liberty to submit the application within 180 days from the commencement of the Insolvency and Bankruptcy Code, 2016.

## Facts

Burn Standard Co. Ltd. filed a Company Petition (IB) No.244/KB/2017 under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company's application was submitted in Form 6 under Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, supported by an affidavit. The company stated that its reference to the BIFR was abated due to the SICA Repeal Act, allowing it to apply under the IBC within 180 days. The company presented a chart detailing financial and operational creditors, with outstanding amounts. It was revealed that the company was in default of approximately Rs.81,902,987.43 to financial creditors. The balance sheet for 2016-17 showed accumulated

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## Issues and analysis

### Issue 1: Whether the application for initiating the Corporate Insolvency Resolution Process under Section 10 …

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

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**Reasoning:** The NCLT considered the application, the supporting documents, and the financial status

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**Interpretation:** The interpretation of Section 10 and Rule 7 allows for the initiation of CIRP

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**Application:** The NCLT applied the provisions of Section 10 and Rule 7 to the facts presented

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## Parties

- **Judges:** V. P. S…; S. VIJAYARA…
- **Respondents:** Burn Standard Co.…
- **Advocates:** Sharmistha…

## Timeline

- **2017-05-24 — Date of H…**: The hearing for the Company…
- **2017-05-31 — Order Si…**: The order for the Company Petition…

## 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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