# In the matter of Nithin Proteins Pvt. Ltd. CP (IB) No. 159-10-AMR-2019

> NCLT judgment dated 2019-11-15. Citation: TCN-2019-NCLT-00585. The case pertains to a petition filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Nov 2019
- **Citation:** TCN-2019-NCLT-00585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nithin-proteins-pvt-ltd-cp-ib-no-159-10-amr-2019-42819b56

## Summary

### Background

The case pertains to a petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Nithin Proteins Private Limited seeking to initiate Corporate Insolvency Resolution Process (CIRP) for itself due to its default in payment of a financial debt. The company, incorporated on 04.09.2014, is engaged in the business of manufacturing, buying, selling, refining, preparing, growing, importing, exporting, and dealing in food products and provisions. To facilitate its operations, the company availed a term loan of Rs. 4.15 crores and a cash credit facility of Rs. 3.25 crores from Bank of India, Tirupathi Branch. The company defaulted on its repayment obligations starting in June 2016, leading to the current petition.

## Facts

Nithin Proteins Private Limited, incorporated on 04.09.2014, sought to initiate Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016, due to its inability to repay financial debts. The company had availed a term loan of Rs. 4.15 crores and a cash credit facility of Rs. 3.25 crores from Bank of India, Tirupathi Branch. The company defaulted on repayments starting in June 2016. Bank of India, the respondent, argued that the company was attempting to avoid actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) and recovery proceedings initiated in OA No. 673 of 2019 before the Debt Recovery Tribunal-II, Hyderabad. The petitioner enclosed

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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 considered the petitioner's default in payment of financial debt and the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The court applied Section 10 to the facts of the case, noting that the

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## Parties

- **Judges:** Janab Mohammed…
- **Respondents:** NITHIN PROTEINS…; Bank of…

## Timeline

- **2014-09-04 — Company Incor…**: Nithin Proteins Private…
- **2016-06-01 — Default on Re…**: Nithin Proteins 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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