# In the matter of METAL HOLDINGS INDIA PRIVATE LIMITED

> NCLT judgment dated 2017-08-17. Citation: TCN-2017-NCLT-00609. M/s. Metal Holdings India Private Limited filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 17 Aug 2017
- **Citation:** TCN-2017-NCLT-00609
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metal-holdings-india-private-limited-2c660002

## Summary

### Background

M/s. Metal Holdings India Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process. The company authorized Mr. Rajmal Mangilal Jain, Director, to file the application. Indian Overseas Bank, through its Nariman Point Branch, Mumbai, had granted various credit facilities to the company. The company was unable to discharge the outstanding amount due to the Financial Creditors and Operational Creditors.

## Facts

M/s. Metal Holdings India Private Limited (the Company) filed an application to initiate Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was authorized by Mr. Rajmal Mangilal Jain, a Director of the Company, via a Board Resolution dated April 26, 2017. The Company was seeking CIRP due to its inability to discharge outstanding debts to both financial and operational creditors. Indian Overseas Bank (IOB), through its Nariman Point Branch, had extended various credit facilities to the Company. As of May 30, 2014, the total outstanding amount was Rs. 64,89,12,014.00, with further interest at contractual rates. IOB had also issued a notice under Section 13(2) of the Securitisation and

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process under Section 10 of …

**Ratio:** Section 10(4)(a) of the Insolvency and Bankruptcy Code, 2016, allows for the admission of

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**Reasoning:** The Adjudicating Authority, after reviewing the application and relevant documents,

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP when it

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**Application:** The application filed by M/s. Metal Holdings India Private Limited was found to

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Rajmal Mangilal…
- **Respondents:** Metal Holding…; Indian Overseas…

## Timeline

- **2017-04-26 — Board Reso…**: Board of Directors of Metal Holdings India Private Limited passed a resolution…
- **2014-05-30 — Outstanding…**: Total outstanding amount due from the Applicant/Corporate Debtor under various facilities…

## 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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