# In the matter of Pratibha Industries Ltd. TCP No. 409-MAH-2017

> NCLT judgment dated 2017-07-31. Citation: TCN-2017-NCLT-00679. The document pertains to a case before the National Company Law Tribunal (NCLT), Mumbai Bench,…

- **Court:** NCLT
- **Order date:** 31 Jul 2017
- **Citation:** TCN-2017-NCLT-00679
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pratibha-industries-ltd-tcp-no-409-mah-2017-71068dfd

## Summary

### Background

The document pertains to a case before the National Company Law Tribunal (NCLT), Mumbai Bench, concerning Magicrete Buildings Solutions Pvt. Ltd. versus Pratibha Industries Ltd. The case is related to the Insolvency and Bankruptcy Code, 2016. The petitioner counsel reported that the bank maintaining the account of the operational creditor is not issuing the certificate as required under Section 9 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Magicrete Buildings Solutions Pvt. Ltd. initiated proceedings against Pratibha Industries Ltd. under the Insolvency and Bankruptcy Code, 2016. The petitioner's counsel reported that the bank maintaining the account of the operational creditor was not issuing the certificate as required under Section 9 of the IBC. The NCLT addressed the issue of whether banks are exempt from issuing such certificates. The case was listed for filing the certificate of the bank.

## Issues and analysis

### Issue 1: Whether the Bank maintaining the account of the Operational Creditor is obligated to issue the …

**Ratio:** The legal principle is that all entities, including banks, are bound by the statutes

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**Reasoning:** The court reasoned that the statute governing the people of the country applies to all,

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**Interpretation:** Section 9 of the IBC mandates the issuance of a certificate by the bank

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**Application:** The court applied the principle by stating that the bank in question is not

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Magicrete…
- **Respondents:** Pratibha Industrie…
- **Advocates:** Shrey Fatte…; Akshita…; +1 more

## Timeline

- **2017-07-31 — Hearing of Mumbai Bench…**: Attendance-cum-order sheet of the hearing of Mumbai Bench of the National Company Law…
- **2017-08-11 — Filing Certificate of…**: Matter listed for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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