# In the matter of Hariom Rice Mill Pvt. Ltd. CP (IB) No. 249-CB-2020

> NCLT judgment dated 2021-06-09. Citation: TCN-2021-NCLT-01994. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Jun 2021
- **Citation:** TCN-2021-NCLT-01994
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hariom-rice-mill-pvt-ltd-cp-ib-no-249-cb-2020-df27ab4f

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by M/s. Hariom Rice Mills Pvt. Ltd. to initiate Corporate Insolvency Resolution Process (CIRP) as the Corporate Person is unable to pay its debt of Rs. 27,33,57,528.36. The company faced severe financial crisis due to a fire incident on 17.05.2017, which resulted in a loss of approximately Rs. 35.00 crores, leading to the inability to repay banks and other creditors, and eventually resulting in the account becoming a Non-Performing Asset (NPA). The applicant has disclosed all information relating to the Books of Account and produced a Board Resolution dated 03.10.2020 authorizing Mr. Subhash Agrawal to file the application.

## Facts

M/s. Hariom Rice Mills Pvt. Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company faced a severe financial crisis due to a fire incident on 17.05.2017, resulting in a loss of approximately Rs. 35.00 crores. This loss led to the company's inability to repay its debts to banks and other creditors, causing its account to become a Non-Performing Asset (NPA). The financial debt owed to Punjab National Bank was sanctioned on 30.03.2017. The company disclosed all relevant information and provided a Board Resolution dated 03.10.2020, authorizing Mr. Subhash Agrawal, a director, to file the application. The Corporate Person proposed Mr. Pratim Bayal as the Interim

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The court found that the Corporate Person had disclosed all relevant information,

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The court applied Section 10 to the facts of the case, noting that the

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** Subhash A…
- **Respondents:** M/s. Hariom Rice…

## Timeline

- **2017-05-17 — Fire Inc…**: A severe fire incident occurred at the rice mill of M/s. Hariom Rice Mills Pvt. Ltd.,…
- **2017-03-30 — Financial Debt…**: Financial debt owed to Punjab…

## 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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