# In the matter of Satnam Agri Products Ltd. CP (IB) No. 124-Chd-Pb-2018

> NCLT judgment dated 2018-10-05. Citation: TCN-2018-NCLT-00654. Satnam Agri Products Ltd., the corporate debtor, filed a petition under Section 10 of the…

- **Court:** NCLT
- **Order date:** 5 Oct 2018
- **Citation:** TCN-2018-NCLT-00654
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/satnam-agri-products-ltd-cp-ib-no-124-chd-pb-2018-ec20a152

## Summary

### Background

Satnam Agri Products Ltd., the 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 company was incorporated on 14.07.2003. It faced financial difficulties, leading to defaults on various financial facilities advanced by State Bank of India, Indian Overseas Bank, and NABARD. The corporate debtor's net worth was fully eroded as per the audited balance sheet ending 31.03.2012, and a reference was filed with the BIFR on 07.09.2012, which later abated due to the enforcement of the IBC. The application was filed due to the company's inability to meet its financial obligations and the lack of working capital.

## Facts

Satnam Agri Products Ltd. filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 14.07.2003. The corporate debtor defaulted on financial facilities advanced by State Bank of India, Indian Overseas Bank, and NABARD. The authorized share capital of the corporate debtor is ₹1,67,50,000, divided into 1675 lacs equity shares of ₹10 each. The issued, subscribed, and paid-up share capital is ₹1,67,30,000, comprising 1673 lacs equity shares of ₹10 each. The petition was filed through Mr. Harbans Singh, Chief Finance Officer, authorized by a Board resolution dated 16.04.2018. The corporate applicant was advanced various financial facilities by State Bank of India,

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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 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for a

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**Reasoning:** The court examined the documents and information provided by the corporate debtor,

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**Interpretation:** The interpretation of Section 10(4) requires the Adjudicating Authority to

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**Application:** In this case, the court found that the corporate debtor's application was

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** Satnam Agri…; Rakesh…

## Timeline

- **2003-07-14 — Incorporation of…**: Satnam Agri Products…
- **2012-03-31 — Net Worth E…**: Corporate debtor's net worth was fully…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(5) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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