# In the matter of P K Industries Private Limited C.P. No.IB-435-(ND)-2017

> NCLT judgment dated 2018-03-23. Citation: TCN-2018-NCLT-01644. The case pertains to an application filed by PK Industries Private Limited under Section 10 of…

- **Court:** NCLT
- **Order date:** 23 Mar 2018
- **Citation:** TCN-2018-NCLT-01644
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/p-k-industries-private-limited-cp-noib-435-nd-2017-d3dd976e

## Summary

### Background

The case pertains to an application filed by PK Industries Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). PK Industries, the Corporate Debtor, is the applicant. The company faced financial difficulties, leading to defaults in payments to its financial creditors. The application was filed before the National Company Law Tribunal (NCLT), New Delhi.

## Facts

PK Industries Private Limited, the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company is involved in manufacturing and dealing with goods and services such as conduit pipes, galvanized steel pipes, PVC fittings, and ceramic wares. The company faced financial difficulties and defaulted on payments to its financial creditors. The Corporate Debtor availed loan facilities from Karnataka Bank Limited (Rs. 5,50,00,000/- in overdraft and Rs. 5,00,00,000/- in term loan) and Aditya Birla Finance Limited (Rs. 15,00,000/- in business loan). As of April 27, 2017, the total liability to Karnataka Bank was Rs. 8,81,33,239.50/- with interest. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor, PK Industries Private Limited, under Section …

**Ratio:** The ratio is based on the interpretation of Section 10 of the IBC, 2016, which allows a

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**Reasoning:** The NCLT reasoned that the application was complete based on the documents submitted,

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**Interpretation:** Section 10 of the IBC, 2016, is interpreted to mean that a corporate debtor can

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**Application:** In this case, the NCLT found that the application was complete because it

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## Parties

- **Judges:** R. VARADH…; Nirmala V…
- **Respondents:** P K Industries…
- **Advocates:** Navin A…; Meetu S…; +2 more

## Timeline

- **2016-12-31 — Account Decla…**: The account of PK Industries Private Limited…
- **2017-04-27 — Total Liability to…**: The total liability due to Karnataka Bank…

## 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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