# In the matter of Shivaani Alloy Steel Castings Limited CP (IB) No. 206-10-HDB-2019

> NCLT judgment dated 2019-04-24. Citation: TCN-2019-NCLT-03730. The case involves an application filed by Shivaani Alloy Steel Castings Private Limited as a…

- **Court:** NCLT
- **Order date:** 24 Apr 2019
- **Citation:** TCN-2019-NCLT-03730
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivaani-alloy-steel-castings-limited-cp-ib-no-206-10-hdb-2019-1cac724a

## Summary

### Background

The case involves an application filed by Shivaani Alloy Steel Castings Private Limited as a Corporate Applicant to initiate a Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The application was triggered by the Corporate Applicant's default in meeting its financial obligations to its Secured Financial Creditor, State Bank of India. The Corporate Applicant was originally incorporated on 21.11.1990 and subsequently converted into a limited company. The Corporate Applicant faced financial difficulties, including recession, power cuts, working capital problems, and issues related to the bifurcation of Andhra Pradesh. They also faced challenges in exporting products to Syrian Government Companies.

## Facts

Shivaani Alloy Steel Castings Private Limited filed an application for Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016, due to default in financial obligations to State Bank of India. The company was incorporated on 21.11.1990 and later converted to a limited company. The company faced financial difficulties including recession, power cuts, working capital problems, and issues related to the bifurcation of Andhra Pradesh. The company exported to Syrian Government Companies but faced challenges. The accumulated losses of the Corporate Applicant as of 26.03.2019 were Rs.79,26,852. The Corporate Applicant proposed a One Time Settlement (OTS) to the secured creditors, which was not accepted. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the application filed by Shivaani Alloy Steel Castings Private Limited for initiating …

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

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**Reasoning:** The Adjudicating Authority considered the information furnished by the Corporate

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**Interpretation:** Section 10 of the IBC provides the legal basis for a corporate debtor to

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**Application:** The Corporate Applicant demonstrated that it had defaulted on its financial

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## Parties

- **Judges:** K. Anantha…
- **Respondents:** Shivaani Alloy…; State Bank of…

## Timeline

- **1990-11-21 — Incorpor…**: Shivani Alloy Steel Castings Private…
- **1994-05-04 — Conversion to Limited…**: Shivani Alloy Steel Castings Private…

## 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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