# In the matter of S R (MCB) Engineers Pvt. Ltd. C.P. (IB) No. 4498-MB-2019

> NCLT judgment dated 2021-06-02. Citation: TCN-2021-NCLT-02049. The case pertains to a petition filed under the Insolvency and Bankruptcy Code (IBC). The…

- **Court:** NCLT
- **Order date:** 2 Jun 2021
- **Citation:** TCN-2021-NCLT-02049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-r-mcb-engineers-pvt-ltd-cp-ib-no-4498-mb-2019-3b5a56b6

## Summary

### Background

The case pertains to a petition filed under the Insolvency and Bankruptcy Code (IBC). The matter was initially expected to be settled, with the Bench directing an initial payment towards settlement. However, the Respondent expressed inability to pay due to financial difficulties. The claimed debt amount of ₹. 16,88,171/- is admitted. The Corporate Debtor was being managed by Rakesh Rathod (since deceased), the father of the authorised signatory, Sahil Rathod, Director. The authorised signatory stated that he has no knowledge of the debt, but they want to settle.

## Facts

Sudhir V Nigujkar filed a petition against S R (MCB) Engineers Pvt Ltd under the Insolvency and Bankruptcy Code. The claimed debt amount is ₹. 16,88,171/-, which is admitted by the Corporate Debtor. The Corporate Debtor was previously managed by Rakesh Rathod (deceased), and currently, his son, Sahil Rathod, is the authorised signatory and Director. Sahil Rathod claims to have no knowledge of the debt but expresses a desire to settle. The Respondent expressed inability to pay the amount due to financial difficulties. The court had previously directed an initial payment towards settlement, which was not complied with. The petition is deemed to be in time and otherwise complete.

## Issues and analysis

### Issue 1: Whether the Company Petition should be admitted given the admitted debt and default by the …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) provides for the admission of a petition when a

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**Reasoning:** The court reasoned that since the debt and default were admitted by the Corporate Debtor,

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**Interpretation:** The IBC is interpreted to mean that if the debt and default are admitted, and

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**Application:** In this case, the Corporate Debtor admitted the debt and default. The petition

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## Parties

- **Judges:** V. Nallasen…; JANAB MОНАММED…
- **Appellants:** Sudhir V Ni…
- **Respondents:** S R (MCB)…
- **Advocates:** Hasmit Tr…

## Timeline

- **2021-02-11 — Previous…**: The court observed that the…
- **2021-04-05 — Bench Dir…**: The Bench directed that at least ₹. 2,00,000/- be paid as an initial payment towards the…

## 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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