# In the matter of Nithin Nutritions Private Limited CP (IB) No. 160-10-AMR-TP-2019

> NCLT judgment dated 2019-11-15. Citation: TCN-2019-NCLT-00578. The case involves a petition filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Nov 2019
- **Citation:** TCN-2019-NCLT-00578
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nithin-nutritions-private-limited-cp-ib-no-160-10-amr-tp-2019-2ef074a4

## Summary

### Background

The case involves a petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Nithin Nutritions Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to its default in payment of a financial debt. The company was incorporated on 12.08.2014 and engaged in the business of manufacturing and dealing in food and dairy products. To achieve its objectives, it availed a term loan of Rs. 4 crores and a cash credit facility of Rs. 0.80 crores from Bank of India, Tirupathi Branch. The company defaulted on its repayment obligations starting in June 2016, leading to the filing of the petition.

## Facts

Nithin Nutritions Private Limited, incorporated on 2014-08-12, sought to initiate CIRP under Section 10 of the Insolvency and Bankruptcy Code, 2016, due to defaulting on financial debt. The company, involved in food and dairy product manufacturing, had availed a term loan of Rs. 4 crores and a cash credit facility of Rs. 0.80 crores from Bank of India, Tirupathi Branch. The company defaulted on repayments starting June 2016. Bank of India, the respondent, argued that the petition was an attempt to avoid SARFAESI Act actions and recovery proceedings before the Debt Recovery Tribunal. The petitioner submitted a copy of the special resolution passed by the shareholders resolving to initiate CIRP. The key fact is the company's default on financial debt and its subsequent

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## Issues and analysis

### Issue 1: Whether the Company Petition should be admitted 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 reasoned that the petitioner had admittedly defaulted in payment of a financial

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**Interpretation:** Section 10 is interpreted to mean that if a corporate debtor admits to a

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**Application:** The court applied the ratio to the facts by noting that Nithin Nutritions

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## Parties

- **Judges:** MOHAMMED…
- **Respondents:** NITHIN NUTRITIONS…; Bank of…

## Timeline

- **2014-08-12 — Company Incor…**: Nithin Nutritions Private…
- **2016-06-01 — Default on Re…**: Nithin Nutritions Private Limited defaulted…

## 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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