# In the matter of Sainsons Pulp and Papers Limited CP (IB) No. 486-Chd-Hry-2019

> NCLT judgment dated 2020-03-03. Citation: TCN-2020-NCLT-01682. M/s. Sainsons Pulp and Papers Limited, the Corporate Debtor, filed a petition under Section 10…

- **Court:** NCLT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLT-01682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sainsons-pulp-and-papers-limited-cp-ib-no-486-chd-hry-2019-d70c2d74

## Summary

### Background

M/s. Sainsons Pulp and Papers Limited, the Corporate Debtor, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor, being incorporated on 19.12.2005, is engaged in the manufacturing of pulp, paper, and duplex board. The State Bank of India, a secured financial creditor, has sanctioned term loans and working capital facilities to the Corporate Debtor. The Corporate Debtor's accounts were declared NPA on 31.03.2011, and a notice was issued under Section 13(2) of the SARFAESI Act. The Corporate Debtor also defaulted on unsecured loans and operational debt. The petition was initially found to have certain defects, which were subsequently rectified by the

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## Facts

M/s. Sainsons Pulp and Papers Limited (Corporate Debtor) filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is engaged in manufacturing pulp, paper, and duplex board, incorporated on 19.12.2005. The State Bank of India (SBI) is a secured financial creditor that provided term loans and working capital facilities. The Corporate Debtor's accounts were declared Non-Performing Assets (NPA) on 31.03.2011. SBI issued a notice under Section 13(2) of the SARFAESI Act due to defaults amounting to ₹10169.57 lakhs. The Corporate Debtor also defaulted on unsecured loans amounting to ₹3,86,20,000/- and operational debt of ₹4,86,958/-. The petition was initially

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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(3) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The Adjudicating Authority considered the documents placed on record by the Corporate

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

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**Application:** The Corporate Debtor, M/s. Sainsons Pulp and Papers Limited, filed an

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Respondents:** M/s Sainsons Pulp…; State Bank of…

## Timeline

- **2005-12-19 — Incorporation of…**: M/s. Sainsons Pulp and Papers…
- **2011-03-31 — Accounts Decl…**: The accounts of the Corporate Debtor were declared Non-Performing Assets (NPA) by the…

## 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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