# In the matter of NCML Industries Ltd. (IB)-254-(PB)-2017

> NCLT judgment dated 2018-10-15. Citation: TCN-2018-NCLT-00572. The case involves an application/petition by Central Bank of India against NCML Industries Ltd.…

- **Court:** NCLT
- **Order date:** 15 Oct 2018
- **Citation:** TCN-2018-NCLT-00572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ncml-industries-ltd-ib-254-pb-2017-6cb76694

## Summary

### Background

The case involves an application/petition by Central Bank of India against NCML Industries Ltd. under Section 7 of the Insolvency & Bankruptcy Code, CIRP. The decision of the CoC for liquidation of the Corporate debtor has been taken by voting share of 84.55% and later SBER Bank has also supported along with Standard Charted Bank. The total voting share comes to about 93%. An appeal against the admission order dated 07.11.2017 before the NCLAT by the Ex-Director is still pending and is likely to come up for hearing on 02.11.2018.

## Facts

Central Bank of India filed an application/petition against NCML Industries Ltd. under Section 7 of the Insolvency & Bankruptcy Code. The Committee of Creditors (CoC) has decided to liquidate the Corporate Debtor with a voting share of 84.55%, supported by SBER Bank and Standard Chartered Bank, totaling approximately 93%. An appeal against the admission order dated 07.11.2017 has been filed before the NCLAT by the Ex-Director, with a hearing scheduled for 02.11.2018. The NCLT is currently considering objections to CA-753(PB)/2018, with a deadline of two weeks granted for filing such objections. The case is scheduled for further consideration on 27.11.2018.

## Issues and analysis

### Issue 1: Whether the decision of the CoC to liquidate …

**Ratio:** The decision of the CoC is generally considered valid if it meets the statutory

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**Reasoning:** The court needs to ascertain whether the CoC's decision-making process was compliant with

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**Interpretation:** The Insolvency and Bankruptcy Code provides a framework for the resolution of

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**Application:** In this case, the CoC's decision to liquidate NCML Industries Ltd. is supported

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** Central Bank of…
- **Respondents:** NCML Industries…

## Timeline

- **2017-11-07 — Admission Ord…**: Date of the admission order against which an appeal was filed before the NCLAT by the…
- **2018-10-15 — Order Del…**: Order delivered by the NCLT…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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