# In the matter of Marmagoa Steel Ltd. CP No. 30-MAH-2017

> NCLT judgment dated 2017-03-20. Citation: TCN-2017-NCLT-00946. The case involves a Company Petition filed by Marmagoa Steel Ltd. under Section 10 of the…

- **Court:** NCLT
- **Order date:** 20 Mar 2017
- **Citation:** TCN-2017-NCLT-00946
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/marmagoa-steel-ltd-cp-no-30-mah-2017-a849c8e4

## Summary

### Background

The case involves a Company Petition filed by Marmagoa Steel Ltd. 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, for initiating the Corporate Insolvency Resolution Process. The Corporate Debtor, Marmagoa Steel Ltd., incorporated in 1987, faced financial difficulties, leading to the classification of its account as a non-performing asset by Bank of Maharashtra and Union Bank of India. A scheme for revival of the sick corporate debtor, previously sanctioned by the Board for Industrial and Financial Reconstruction, was unsuccessful.

## Facts

Marmagoa Steel Ltd. filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process. The company was incorporated on July 17, 1987, with a registered office in Goa. The Board of Directors authorized Mr. R.K. Radhakrishna to file the application. The company provided audited financial statements for 2014-15 and 2015-16, along with provisional statements as of December 31, 2016. Bank of Maharashtra and Union Bank of India, as financial creditors, had classified the company's account as a non-performing asset and issued notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Act, 2002, demanding repayment. Union Bank of India

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## Issues and analysis

### Issue 1: Whether the petition filed by Marmagoa Steel Ltd. under Section 10 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The court reviewed the petition and supporting documents and found that the Corporate

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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 presented, determining that Marmagoa

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Respondents:** Marmagoa Steel…

## Timeline

- **1987-07-17 — Incorporation of…**: Marmagoa Steel Ltd. was…
- **2014-09-30 — Assignment of Loans by…**: Union Bank of India assigned the loans and facilities disbursed to the Corporate debtor…

## 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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