# In the matter of Shamken Multifab Limited Comapny Petition (IB)No. 133-ALD-2017

> NCLT judgment dated 2018-05-29. Citation: TCN-2018-NCLT-01361. The case pertains to a Company Petition (IB) No. 133/ALD/2017 filed under Section 7 of the…

- **Court:** NCLT
- **Order date:** 29 May 2018
- **Citation:** TCN-2018-NCLT-01361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shamken-multifab-limited-comapny-petition-ibno-133-ald-2017-b89fd890

## Summary

### Background

The case pertains to a Company Petition (IB) No. 133/ALD/2017 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016. The petition was filed by Asset Reconstruction Company (India) Limited, the financial creditor, against Shamken Multifab Limited, the corporate debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The corporate debtor raised objections, citing issues with the power of attorney, incomplete application, and prior proceedings before BIFR and other forums.

## Facts

Asset Reconstruction Company (India) Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shamken Multifab Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Shamken Multifab Limited had approached Bank of India (BOI) for financial assistance, and BOI sanctioned term loans and working capital term loans. The corporate debtor accepted the terms and conditions of the credit facilities and executed loan and security documents. Subsequently, Bank of India assigned its rights, title, interest, and benefits in respect of the debts to Asset Reconstruction Company (India) Limited. The amount claimed to be in default by the applicant was Rs. 188,76,74,041/-. The corporate debtor filed objections, stating that

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The application under Section 7 of the IBC is complete if it meets the requirements

…

**Reasoning:** The court found that the application filed by the financial creditor was complete and met

…

**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

…

**Application:** In this case, the court found that the financial creditor's application was

…

## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Shamken Multifab…; M/s Shamken…

## Timeline

- **1986-11-10 — Incorporation of…**: M/s Shamken Multifab…
- **1999-03-25 — Sanction Lett…**: Date of the sanction letter for the term…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shamken-multifab-limited-comapny-petition-ibno-133-ald-2017-b89fd890