# In the matter of Recorders and Medicare Systems Pvt Ltd C.P(IB) 7- Chd- HR- 2017

> NCLT judgment dated 2017-03-16. Citation: TCN-2017-NCLT-00949. The case involves an application filed by Recorders and Medicare Systems Pvt. Ltd., a…

- **Court:** NCLT
- **Order date:** 16 Mar 2017
- **Citation:** TCN-2017-NCLT-00949
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/recorders-and-medicare-systems-pvt-ltd-cpib-7-chd-hr-2017-2fb0c274

## Summary

### Background

The case involves an application filed by Recorders and Medicare Systems Pvt. Ltd., a 'Corporate Debtor,' under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process. The company's registered office is in Chandigarh. The company was previously declared a sick industrial unit by the Board of Industrial and Financial Reconstruction (BIFR), with State Bank of Patiala appointed as the operating agency. The BIFR proceedings were ongoing but abated due to the repeal of the Sick Industrial Companies Act (SICA). The company has significant debts to financial and operational creditors and has defaulted on payments. Notices were issued under Section 13(2) of the SARFAESI Act, 2002, by State Bank of Patiala and State Bank of

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## Facts

Recorders and Medicare Systems Pvt. Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process. The company's registered office is in Chandigarh. The company was previously declared a sick industrial unit by the Board of Industrial and Financial Reconstruction (BIFR), with State Bank of Patiala appointed as the operating agency. The BIFR proceedings were ongoing but abated due to the repeal of the Sick Industrial Companies Act (SICA). The company has significant debts to financial creditors (₹63.58 crores outstanding, ₹80.84 crores in default) and operational creditors (various categories with defaults). Notices were issued under Section 13(2) of the SARFAESI Act, 2002, by State Bank of

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to file

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**Reasoning:** The Tribunal considered the financial status of the company, including its debts,

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The Tribunal admitted the application, finding that it deserved to be admitted

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## Parties

- **Judges:** R.P.Nag…; DeepaKr…
- **Respondents:** Recorders and…

## Timeline

- **2003-12-15 — Company Incor…**: Recorders and Medicare Systems Pvt. Ltd. was incorporated with the Registrar of…
- **2012-12-31 — BIFR Ord…**: The Board of Industrial and Financial Reconstruction (BIFR) declared the applicant…

## 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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