# In the matter of Hind Motors Ltd. CP (IB) No. 1 (Chd)-2017

> NCLT judgment dated 2017-02-14. Citation: TCN-2017-NCLT-00975. M/s Hind Motors Ltd. filed an application to initiate corporate insolvency resolution process…

- **Court:** NCLT
- **Order date:** 14 Feb 2017
- **Citation:** TCN-2017-NCLT-00975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hind-motors-ltd-cp-ib-no-1-chd-2017-09824481

## Summary

### Background

M/s Hind Motors Ltd. filed an application to initiate corporate insolvency resolution process under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC). The company was incorporated on 11.06.1990. The application was filed in Form 6. The company has three directors: Ashish Mohan Gupta, Rajesh Sharma, and Dev Sharma. The company has seven shareholders. The applicant proposed Mr. Manik Goyal as the Interim Resolution Professional (IRP). The applicant faced defaults in loan payments to Union Bank of India, ICICI Bank, and State Bank of India. The applicant also defaulted on repayments to public depositors. The applicant had earlier filed an application under Section 74(2) of the Companies Act, 2013, seeking an extension of time to make payments to its depositors.

## Facts

M/s Hind Motors Ltd., incorporated on 11.06.1990, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate corporate insolvency resolution process. The company's authorized share capital is ₹3.50 crores, and the issued, subscribed, and paid-up capital is ₹2.50 crores. The company has three directors: Ashish Mohan Gupta, Rajesh Sharma, and Dev Sharma. The company has defaulted on loan payments to Union Bank of India (₹4.80 crores), ICICI Bank, and State Bank of India. Union Bank of India has initiated SARFAESI proceedings. The company has also defaulted on repayments to public depositors, leading to consumer complaints and execution proceedings. The company owes approximately ₹8.59 crores to its depositors. The company had

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate corporate insolvency

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**Reasoning:** The court noted that the applicant had filed the application under Section 10 of the IBC

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

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**Application:** The court found that the application was maintainable as it was filed by the

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## Parties

- **Judges:** R.P.Nag…; Deepa Kr…; +1 more
- **Respondents:** M/s. Hind Motors…

## Timeline

- **1990-06-11 — Company Incor…**: M/s Hind Motors Ltd. was incorporated with the Registrar of Companies, Punjab, Himachal…
- **2016-06-16 — SARFAESI…**: Union Bank of India served a notice under Section 13(2) of the SARFAESI Act, 2002 due to…

## 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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