# In the matter of Sarthak Creation Pvt. Ltd. CP (IB) No. 85-10-NCLT-AHM-2017

> NCLT judgment dated 2017-08-30. Citation: TCN-2017-NCLT-00503. Sarthak Creation Private Limited, through its Authorised Person, Shri Subhas Kedarnath…

- **Court:** NCLT
- **Order date:** 30 Aug 2017
- **Citation:** TCN-2017-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarthak-creation-pvt-ltd-cp-ib-no-85-10-nclt-ahm-2017-65e06b3f

## Summary

### Background

Sarthak Creation Private Limited, through its Authorised Person, Shri Subhas Kedarnath Tibrewal, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The applicant/corporate debtor stated that it has debts of Rs. 62,85,23,199/- to the Financial Creditors. Bank of Baroda, one of the financial creditors, had initiated securitization action under Section 13(4) of the SARFAESI Act, 2002, but the proceedings were abated before BIFR. The applicant stated that it has become difficult to revive the company considering the present market condition and proposed the name of Mr. Kailash T. Shah as Interim Insolvency Resolution Professional.

## Facts

Sarthak Creation Private Limited (the Corporate Debtor) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor, through its authorized person Shri Subhas Kedarnath Tibrewal, stated that it owed Rs. 62,85,23,199/- to its Financial Creditors. Bank of Baroda, one of the Financial Creditors, had initiated securitization action under Section 13(4) of the SARFAESI Act, 2002, but these proceedings were abated before the Board for Industrial and Financial Reconstruction (BIFR). The Corporate Debtor admitted to defaults in repayment to the Financial Creditors, including Bank of Baroda. The Corporate Debtor proposed the name of Mr. Kailash T. Shah as the Interim

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## Issues and analysis

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

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code overrides other laws and allows for the

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**Reasoning:** The Adjudicating Authority reasoned that the pendency of proceedings before the DRT or

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**Interpretation:** Section 238 of the IBC is interpreted to have an overriding effect over other

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**Application:** The Adjudicating Authority applied the ratio of Section 238 to the facts of the

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Sarthak Creation…
- **Respondents:** Sarthak Creation…; Bank of B…
- **Advocates:** Pavan S. Go…; Ketan M.…

## Timeline

- **2017-07-10 — Board Me…**: Sarthak Creation Private Limited resolved in its Board Meeting to file an Application…
- **2017-08-18 — First Li…**: The matter was listed before the Tribunal for the first time. The Adjudicating Authority…

## 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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