# In the matter of DMS Petrochemical Private Limited CP (IB) No.255-Chd-J&K-2018

> NCLT judgment dated 2019-01-15. Citation: TCN-2019-NCLT-05240. The case pertains to an application filed by M/s DMS Petrochemical Private Limited, the…

- **Court:** NCLT
- **Order date:** 15 Jan 2019
- **Citation:** TCN-2019-NCLT-05240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dms-petrochemical-private-limited-cp-ib-no255-chd-jk-2018-0a76fe36

## Summary

### Background

The case pertains to an application filed by M/s DMS Petrochemical Private Limited, the Corporate Applicant, under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Applicant stated that it had been advanced various financial facilities by Jammu & Kashmir Bank Limited, but due to multiple factors, including a bad and delayed under-financing pattern and factors related to militancy and disturbance in the state, its account was declared NPA. The Corporate Applicant also detailed its financial status, including secured and unsecured creditors, and operational creditors. The Corporate Applicant had also approached the High Court of Jammu and Kashmir, which ordered the restoration of

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## Facts

M/s DMS Petrochemical Private Limited, the Corporate Applicant, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). The company's account was declared a Non-Performing Asset (NPA) due to various factors, including under-financing and disturbances in the state. Jammu & Kashmir Bank Limited is the secured financial creditor. The Corporate Applicant had obtained financial facilities from the bank, but faced difficulties in repayment. The company's authorized share capital is ₹1,00,00,000/-, and its issued, subscribed, and paid-up capital is ₹1,00,00,000/-. The company had approached the High Court of Jammu and Kashmir, which ordered the restoration of the company's unit. The

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant, M/s DMS Petrochemical Private Limited, has met the requirements …

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

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**Reasoning:** The Adjudicating Authority considered the documents and submissions made by the Corporate

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**Interpretation:** Section 10 of the IBC is interpreted to mean that if a corporate applicant

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**Application:** In this case, the Corporate Applicant provided evidence of its financial

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** M/s DMS PETROCHEMI…; Jammu And Kashmir…

## Timeline

- **2009-01-06 — Incorporation of…**: The Corporate Applicant, M/s DMS…
- **2014-10-11 — Notice under Section…**: Jammu & Kashmir Bank sent a notice to the Corporate Applicant under Section 13(2) of the…

## Legal provisions

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

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