# In the matter of Delta Automobiles Private Limited CP (IB) - 97-(MB)-2018

> NCLT judgment dated 2018-06-13. Citation: TCN-2018-NCLT-01285. Delta Automobiles Private Limited filed a Company Petition under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 13 Jun 2018
- **Citation:** TCN-2018-NCLT-01285
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/delta-automobiles-private-limited-cp-ib-97-mb-2018-6657b097

## Summary

### Background

Delta Automobiles Private Limited filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process. The Corporate Debtor disclosed outstanding dues of ₹10,96,45,336/- to Financial and Operational Creditors. The Assistant Commissioner of Sales Tax (INV), Kolhapur, had previously attached the Corporate Debtor's immovable property for assessment dues from 2009-10 to 2012-13, amounting to ₹4,20,12,047. Saraswat Bank also issued a notice on 07.03.2015, demanding ₹2,22,82,513 with 17% p.a. interest from 01.03.2015.

## Facts

Delta Automobiles Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company's registered office is located at Plot No. 62, Wardr opp of Ayodhya Park, Near Seven Days High School, Shivaji Park Kolhapur, Kolhapur 416001, and it was incorporated on 06.06.2001. The company's CIN is U34300PN2001PTC16203, and its paid-up share capital is Rs. 40,00,000/-. A meeting of the Board of Directors held on 23.03.2017 authorized Mr. Arvind Haripant Tolye, a Director, to file the application. The company disclosed that it owes ₹10,96,45,336/- to Financial and Operational Creditors. The Assistant Commissioner of Sales Tax (INV), Kolhapur, had attached the company's immovable property on 03.10.2015 for assessment dues from 2009-10 to

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## Issues and analysis

### Issue 1: Whether the petition filed by Delta Automobiles Private Limited under Section 10 of the Insolvency …

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

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**Reasoning:** The Bench reviewed the petition and supporting documents and found that the Corporate

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

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**Application:** The Bench applied Section 10 to the facts presented by Delta Automobiles

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Delta Automobiles…

## Timeline

- **2017-03-23 — Board Me…**: The Board of Directors of the Corporate Debtor authorized Mr. Arvind Haripant Tolye to…
- **2015-10-03 — Attachment…**: The Assistant Commissioner of Sales Tax (INV), Kolhapur attached the immovable property…

## 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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