# In the matter of Saicon Steels Pvt. Ltd. CP (IB) No. 1597-MB-2017

> NCLT judgment dated 2018-05-02. Citation: TCN-2018-NCLT-01470. Saicon Steels Pvt. Ltd. filed a Company Petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 May 2018
- **Citation:** TCN-2018-NCLT-01470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saicon-steels-pvt-ltd-cp-ib-no-1597-mb-2017-95c9eb57

## Summary

### Background

Saicon Steels Pvt. Ltd. filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, for initiating the Corporate Insolvency Resolution Process. The Corporate Debtor disclosed that it is in default of ₹29,25,60,679/- to Financial Creditors and ₹1,15,95,854/- to Operational Creditors. The Corporate Debtor's registered office is located in Mumbai, and it was incorporated on 11.12.2003. The Board of Directors authorized Mr. Shyam Sunder Vishwanath Agarwal to file the necessary application under the Code.

## Facts

Saicon Steels Pvt. Ltd. filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process. The company's registered office is in Mumbai, and it was incorporated on 11.12.2003. The company disclosed that it owes ₹29,25,60,679/- to Financial Creditors and ₹1,15,95,854/- to Operational Creditors, indicating a state of default. The Board of Directors authorized Mr. Shyam Sunder Vishwanath Agarwal to file the application. The petition included a sanction letter from Canara Bank dated 10.10.2011, sanctioning a cash credit of ₹20 crores, and a certificate of registration of modification of charge under Sections 132 and 135 of the Companies Act, 2013. The Corporate Debtor also enclosed documents such

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## Issues and analysis

### Issue 1: Whether the petition 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

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**Reasoning:** The court found that the Corporate Debtor had committed a default by failing to meet its

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to proactively address

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**Application:** The Corporate Debtor disclosed defaults to Financial Creditors

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Respondents:** SAICON STEELS…

## Timeline

- **2003-12-11 — Incorporation of…**: Saicon Steels Pvt. Ltd.…
- **2011-10-10 — Sanction Letter from…**: Canara Bank sanctioned open…

## 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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