# In the matter of R. S. H. Agro Products Ltd. C.P (IB) No. 18-GB-2021

> NCLT judgment dated 2021-11-23. Citation: TCN-2021-NCLT-00436. The case involves an application under Section 10 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 23 Nov 2021
- **Citation:** TCN-2021-NCLT-00436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-s-h-agro-products-ltd-cp-ib-no-18-gb-2021-6d3fef6b

## Summary

### Background

The case involves an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by RSH Agro Products Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company, originally incorporated as a Private Limited Company in Kolkata on June 26, 2012, later converted to a Public Limited Company on September 6, 2017. It manufactures and supplies edible oils. The Corporate Debtor faced financial difficulties, incurring substantial losses and defaulting on credit facilities availed from Punjab National Bank (PNB), ICICI Bank, and HDFC Bank. PNB classified the Corporate Debtor's facilities as non-performing assets (NPA) on March 31, 2021, and issued a notice under the SARFAESI Act on May

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## Facts

RSH Agro Products Limited, the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company is engaged in manufacturing and supplying edible oils. The Corporate Debtor availed credit facilities from Punjab National Bank (PNB), ICICI Bank, and HDFC Bank. The Corporate Debtor incurred substantial losses of Rs.16.63 crores, Rs.26.05 Crores and Rs.2.04 crores during the FY's 2019-20 and 2021-22 (up to 31.07.2021) respectively. The cumulative losses amounted to Rs.28.39 crores as on 31.07.2021. The total dues payable to PNB as on 31.07.2021 were Rs.46.95 Crores. PNB classified the Corporate Debtor's facilities as non-performing assets

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The Adjudicating Authority considered the materials and papers filed by both the

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**Interpretation:** Section 10 of the IBC and the related rules specify the requirements for a

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**Application:** The Adjudicating Authority found that the Corporate Debtor had furnished the

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## Parties

- **Judges:** H.V. Subb…; Prasanta Kumar…
- **Respondents:** M/S R.S.H Agro…; Punjab National…
- **Advocates:** B. R. P…; S. Du…

## Timeline

- **2012-06-26 — Incorpor…**: RSH Agro Products Limited was originally incorporated as a Private Limited Company in…
- **2017-09-06 — Conversion to Public…**: RSH Agro Products Limited was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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