# in the matter of Mehadia Sales Trade Corporation Pvt. Ltd. CP No. 1135-MAH-2017

> NCLT judgment dated 2017-07-06. Citation: TCN-2017-NCLT-00757. The case pertains to a Company Petition filed by Mehadia Sales Trade Corporation Private…

- **Court:** NCLT
- **Order date:** 6 Jul 2017
- **Citation:** TCN-2017-NCLT-00757
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mehadia-sales-trade-corporation-pvt-ltd-cp-no-1135-mah-2017-9db1018a

## Summary

### Background

The case pertains to a Company Petition filed by Mehadia Sales Trade Corporation Private Limited under Section 10 of the Insolvency and Bankruptcy Code 2016, seeking initiation of the Corporate Insolvency Resolution Process. The Corporate Debtor disclosed financial difficulties, including defaults in payments to financial and operational creditors. The Corporate Debtor's board authorized its Managing Director to file the application. The Corporate Debtor has disclosed that a sum of Rs.136,64,69,073/- is due to Financial Creditors and a sum of Rs.15,71,70,941/- is due to Operational Creditors. The Corporate Debtor says that the total debt of Rs.152,36,40,014/- is in default.

## Facts

Mehadia Sales Trade Corporation Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process. The Corporate Debtor's registered office is located in Nagpur and was incorporated on 29.06.2012. The Corporate Debtor has an authorized share capital of Rs.12.50 crores and a paid-up share capital of Rs.12.00 crores. The Board of Directors authorized Mr. Pankaj Agrawal to file the application. The Corporate Debtor disclosed outstanding debts of Rs.136,64,69,073/- to Financial Creditors and Rs.15,71,70,941/- to Operational Creditors, totaling Rs.152,36,40,014/- in default. Sanction letters from Oriental Bank of Commerce and State Bank of India were enclosed, indicating credit

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor has committed a default as required under Section 10 of the Insolvency …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The court reviewed the petition and supporting documents, including financial statements,

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**Interpretation:** Section 10 of the IBC is interpreted to mean that if a corporate debtor is

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**Application:** Based on the evidence presented, the court determined that the Corporate Debtor

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Respondents:** Mehadia Sales…

## Timeline

- **2012-06-29 — Incorpor…**: Mehadia Sales Trade Corporation…
- **2013-09-16 — Sanction…**: Oriental Bank of Commerce issued a…

## 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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