# In the matter of Gujarat Oleo Chem Ltd CP.No. 4-10-Ahm-2017

> NCLT judgment dated 2017-04-13. Citation: TCN-2017-NCLT-00901. Gujarat Oleo Chem Ltd. filed a petition under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Apr 2017
- **Citation:** TCN-2017-NCLT-00901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gujarat-oleo-chem-ltd-cpno-4-10-ahm-2017-5a7de988

## Summary

### Background

Gujarat Oleo Chem Ltd. filed a 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. The company had previously filed a reference with the BIFR under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, which was dismissed. An appeal to the AAIFR resulted in the matter being remanded to the BIFR for a Special Investigation Audit. Subsequently, another reference was filed with the BIFR, which was also dismissed. An appeal against this dismissal was allowed by the AAIFR. With the repeal of SICA, no further proceedings took place before the BIFR. The applicant claims that the current petition is filed due to the amendment in the

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## Facts

Gujarat Oleo Chem Ltd. filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company had previously filed a reference with the BIFR under the Sick Industrial Companies Act (SICA), which was initially dismissed due to unclean hands and manipulated accounts. An appeal to the AAIFR led to a remand for a Special Investigation Audit. Another reference was filed with the BIFR, which was also dismissed, but this dismissal was later set aside by the AAIFR. IDBI took possession of the secured assets of the Corporate Applicant under the Securitisation Act. The company's reference before the BIFR was pending as of 29.11.2016. The company is in default to creditors for Rs. 4879.63 Lakhs. The petition was filed before the Adjudicating Authority on 2nd

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## Issues and analysis

### Issue 1: Whether the petition filed by the Corporate Applicant is admissible under Section 10(4)(a) of the …

**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 material on record, which showed that the

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**Interpretation:** Section 10 provides the mechanism for a corporate debtor to initiate CIRP when

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**Application:** Given the default and the applicant's status as a corporate debtor, the

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Respondents:** Gujarat Oleo Chem…; IDBI Bank…

## Timeline

- **2006-06-30 — Audited Balance Sheet…**: Audited Balance Sheet date based…
- **2006-12-28 — Reference filed with…**: Applicant filed Reference under Section 15(1) of the Sick Industrial Companies (Special…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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