# in the matter of Ruby Cable Ltd. CP (IB) No. 45-10-AHM-2017

> NCLT judgment dated 2017-08-02. Citation: TCN-2017-NCLT-00668. The case involves an application filed by the Managing Director of Ruby Cables Ltd., Chirag…

- **Court:** NCLT
- **Order date:** 2 Aug 2017
- **Citation:** TCN-2017-NCLT-00668
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ruby-cable-ltd-cp-ib-no-45-10-ahm-2017-a51a4bf3

## Summary

### Background

The case involves an application filed by the Managing Director of Ruby Cables Ltd., Chirag Gada, under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). Ruby Cables Ltd. is the corporate debtor. The application was filed due to alleged default to Bank of Baroda, a financial creditor, amounting to Rs. 19.31 crores. The corporate applicant also stated that Bank of Baroda had issued notices under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The application was initially filed on 28.06.2017 and listed before the authority on 12.07.2017. The Adjudicating Authority directed the Corporate Applicant to issue notice of hearing to the

…

## Facts

Ruby Cables Ltd., incorporated on 24.12.1996, is a limited company with its registered office in Gujarat. The authorized share capital is Rs. 10,00,00,000, and the issued, subscribed, and paid-up share capital is Rs. 6,25,10,000. The corporate debtor has four directors and passed a Board Resolution on 05.06.2017 authorizing its Managing Director, Mr. Chirag N. Gada, to file an application under Section 10 of the Insolvency & Bankruptcy Code, 2016. The corporate debtor has committed default to Bank of Baroda, a financial creditor, to the tune of Rs. 19.31 crores. Bank of Baroda issued notices under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, on 15.04.2017 and 25.04.2017. As of 05.06.2017, the corporate

…

## Issues and analysis

### Issue 1: Whether the application under Section 10 of the Insolvency and Bankruptcy Code, 2016 should be …

**Ratio:** The application is admitted under section 10 (4) (a) of the code if it meets the

…

**Reasoning:** The Adjudicating Authority found that the application filed by the corporate debtor was

…

**Interpretation:** Section 10 of the IBC allows a corporate applicant to initiate CIRP if it has

…

**Application:** Based on the facts presented, the Adjudicating Authority determined that the

…

## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Chirag…
- **Respondents:** Ruby Cables…; Bank of B…

## Timeline

- **1996-12-24 — Incorporation of Ruby…**: Ruby Cables Ltd. was incorporated…
- **2017-02-07 — PGVCL Cir…**: Paschim Gujarat Vij Company Ltd. (PGVCL) issued a circular to stop dealing with the…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/ruby-cable-ltd-cp-ib-no-45-10-ahm-2017-a51a4bf3