# In the matter of Gajanan Paper Mills Private Ltd. CP (IB) - 1745-(MB)-2017

> NCLT judgment dated 2018-04-12. Citation: TCN-2018-NCLT-01558. The case pertains to a company petition filed by Gajanan Paper Mills Private Ltd. (Corporate…

- **Court:** NCLT
- **Order date:** 12 Apr 2018
- **Citation:** TCN-2018-NCLT-01558
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gajanan-paper-mills-private-ltd-cp-ib-1745-mb-2017-a91c119e

## Summary

### Background

The case pertains to a company petition filed by Gajanan Paper Mills Private Ltd. (Corporate Debtor) 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 (CIRP). The Corporate Debtor disclosed its registered office and incorporation details. The Board of Directors authorized Mr. Prabhakar Narayan Patil to file the necessary application.

## Facts

Gajanan Paper Mills Private Ltd. (Corporate Debtor) filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's registered office is located in Mumbai and was incorporated on 11.08.1994. The Board of Directors authorized Mr. Prabhakar Narayan Patil to file the application. The Corporate Debtor disclosed a debt of ₹2,00,00,000/- due to State Bank of India, which was claimed to be regular, and a debt of Rs. 1,73,59,000/- due to operational creditors, which was in default. However, a letter from State Bank of India indicated overdue payments and a notice under Section 13(2) of the SARFAESI Act, 2002, for outstanding liabilities of Rs. 2,97,98,691/- in DCC Limit and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Gajanan Paper Mills Private Ltd., has committed a default as defined …

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

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

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**Interpretation:** The interpretation of 'default' under the IBC is broad and includes any failure

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**Application:** The court applied the definition of 'default' to the facts presented by the

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Gajanan Paper…

## Timeline

- **1994-08-11 — Incorporation of…**: Gajanan Paper Mills…
- **2016-01-25 — SARFAESI…**: State Bank of India issued a notice under…

## 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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