# In the matter of Global Coke Limited C.P.(IB) No.69-KB-2018

> NCLT judgment dated 2018-05-10. Citation: TCN-2018-NCLT-01430. Global Coke Limited, a Non-Government Company, filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 10 May 2018
- **Citation:** TCN-2018-NCLT-01430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/global-coke-limited-cpib-no69-kb-2018-978b4455

## Summary

### Background

Global Coke Limited, a Non-Government Company, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process. The corporate applicant was engaged in the business of manufacturing coke but stopped manufacturing activities. They availed loans from various financial creditors and were indebted to Rs.416.55 crores to financial creditors and Rs.25.16 crores to operational creditors. Due to failure in repayment, creditors initiated proceedings under the SARFAESI Act, 2002. The corporate applicant also initiated proceedings under the Sick Industrial Companies (Special Provisions) Act 1985, which was

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## Facts

Global Coke Limited, a non-government company, engaged in manufacturing coke, faced financial difficulties and stopped manufacturing. It had significant debts: Rs. 416.55 crores to financial creditors (including State Bank of India, Punjab National Bank, Corporation Bank, Bajaj Finance Limited, and Kotak Mahindra Bank Limited) and Rs. 25.16 crores to operational creditors. The company failed to repay dues, leading creditors to initiate proceedings under the SARFAESI Act, 2002. The company also initiated proceedings under the Sick Industrial Companies (Special Provisions) Act 1985, later repealed. The Board of Directors decided to file an application under Section 10 of the IBC. The financial creditors, including State Bank of India, Corporation Bank, and Punjab

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant 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 Adjudicating Authority considered that all the required documents were produced on

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

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**Application:** The Adjudicating Authority admitted the application filed by Global Coke

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Respondents:** Global Coke…

## Timeline

- **2016-12-01 — Repeal of…**: The Sick Industrial Companies (Special Provisions) Act 1985 was repealed on December 2016…
- **2016-11-28 — Notification of Repeal…**: The Sick Industrial Companies (Special Provisions) Repeal Act 2003 came into force by the…

## 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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