# In the matter of Shirdi Industries Ltd.

> NCLT judgment dated 2017-05-18. Citation: TCN-2017-NCLT-00858. The case pertains to a Company Petition filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 May 2017
- **Citation:** TCN-2017-NCLT-00858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shirdi-industries-ltd-a058ddac

## Summary

### Background

The case pertains to a Company Petition filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, by M/s. Shirdi Industries Ltd. for the initiation of Corporate Insolvency Resolution Process (CIRP). The company defaulted in repaying its debts. The Debtor Company was incorporated on 15.12.2013. Prior to this petition, the company had approached BIFR and was declared a sick company, but with the repeal of the Sick Industrial Companies Act (SICA), the BIFR proceedings were abated.

## Facts

M/s. Shirdi Industries Ltd. filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to its inability to repay debts. The company was incorporated on 15.12.2013 with an authorized share capital of ₹30 Crore. The company defaulted on loans taken from a consortium of banks, including Union Bank of India, UCO Bank, Indian Bank, Vijaya Bank, Bank of India, and State Bank of India, with outstanding financial credit reaching ₹411.46 crores as of 31.3.2017. Union Bank of India, the lead bank, had issued a notice on 26.12.2013 under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The company had

…

## Issues and analysis

### Issue 1: Whether the Company Petition filed by M/s. Shirdi Industries Ltd. under Section 10 of the …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to

…

**Reasoning:** The Bench was satisfied that the debtor company had defaulted in repaying its debts to

…

**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

…

**Application:** The court applied Section 10 to the facts, noting that M/s. Shirdi Industries

…

## Parties

- **Judges:** B.S.V. Prakash…
- **Appellants:** Ranjan Dw…
- **Respondents:** M/s. Shirdi…

## Timeline

- **2013-12-15 — Company Incor…**: The Debtor Company, M/s. Shirdi…
- **2013-12-26 — Notice under SARFAESI…**: Union Bank of India issued notice u/s 13 of Securitisation and Reconstruction of…

## 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)

---

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/shirdi-industries-ltd-a058ddac