# In the matter of Hind Motors Mohali Pvt. Ltd C.P (IB) 03- Chd- 2017

> NCLT judgment dated 2017-02-20. Citation: TCN-2017-NCLT-00968. The case pertains to an application filed by M/s Hind Motors Mohali Pvt. Ltd., a 'Corporate…

- **Court:** NCLT
- **Order date:** 20 Feb 2017
- **Citation:** TCN-2017-NCLT-00968
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hind-motors-mohali-pvt-ltd-cp-ib-03-chd-2017-2fda727d

## Summary

### Background

The case pertains to an application filed by M/s Hind Motors Mohali Pvt. Ltd., a 'Corporate Debtor', under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a corporate insolvency resolution process. The company was incorporated on 11.07.2011 and claims to have defaulted on its debt obligations. The application is supported by resolutions of the Board of Directors authorizing the initiation of the insolvency process. The company's financial position reveals accumulated losses and significant liabilities.

## Facts

M/s Hind Motors Mohali Pvt. Ltd., incorporated on 11.07.2011, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process. The company's authorized share capital is ₹2 crores, and subscribed and paid-up capital is ₹1.01 crore. The company has two directors, Ashish M.Gupta and Rajesh Sharma, and three shareholders: Ashish Mohan Gupta, Shuchi Gupta, and Hind Motors India Ltd. The company's financial position shows accumulated losses and long-term borrowings. The company owes ₹3.09 crores to Union Bank of India, which has initiated SARFAESI proceedings. The company also owes ₹3,12,56,635/- to Hind Motors India Ltd. and ₹1,05,01,121/- to M/s Hind Motors. The applicant intends to settle with the bank

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor, M/s Hind Motors Mohali Pvt. Ltd., meets the …

**Ratio:** Section 10 of the IBC allows a corporate debtor to file an application for initiating

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**Reasoning:** The court considered the documents and averments made in the application, including the

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**Interpretation:** Section 10 of the IBC provides a mechanism for corporate debtors to initiate

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**Application:** The court found that M/s Hind Motors Mohali Pvt. Ltd. had demonstrated a

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## Parties

- **Judges:** R.P.Nag…; DeepaKr…
- **Respondents:** M/s Hind Motors…

## Timeline

- **2011-07-11 — Company Incor…**: M/s Hind Motors Mohali Pvt. Ltd. was incorporated with the Registrar of Companies,…
- **2016-06-16 — SARFAESI…**: Union Bank of India served the applicant company with a notice under Section 13(2) of the…

## 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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