# in the matter of Shivek Labs Ltd. CP (IB) No. 36-Chd-CHD-2017

> NCLT judgment dated 2017-07-06. Citation: TCN-2017-NCLT-00756. The case pertains to an application filed by Shivek Labs Limited under Section 10 of the…

- **Court:** NCLT
- **Order date:** 6 Jul 2017
- **Citation:** TCN-2017-NCLT-00756
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivek-labs-ltd-cp-ib-no-36-chd-chd-2017-b611c30c

## Summary

### Background

The case pertains to an application filed by Shivek Labs Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the corporate insolvency resolution process (CIRP). Shivek Labs Limited, acting as the 'Corporate Debtor' itself, filed the application in Form 6 as prescribed by the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The company stated that it had defaulted on its debt obligations to various financial creditors, including Punjab National Bank, Canara Bank, and IDBI Bank. The company had previously been registered with the Board for Industrial and Financial Reconstruction (BIFR), but those proceedings abated due to the repeal of the Sick Industrial Companies Act.

## Facts

Shivek Labs Limited filed an application under Section 10 of the IBC, 2016, to initiate CIRP. The company was incorporated on 10.02.2003. The authorized share capital of the company is ₹5,00,00,000, and the paid-up capital is ₹4,85,54,230. The directors of the company are Mr. Sunil Guglani, Mrs. Suman Guglani, and Mr. Suhail Guglani. The company has defaulted on its debt obligations to financial creditors, including Punjab National Bank (₹69.78 crores), Canara Bank (₹39.04 crores), and IDBI Bank (₹8.40 crores). Notices under Section 13(2) of the SARFAESI Act, 2002, were issued by the banks due to the defaults. The total outstanding amount as per notices issued by the financial creditors is ₹117,22,20,961.91. The company proposed Mr. Vivek Kumar Arora as the Interim

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## Issues and analysis

### Issue 1: Whether the application filed by Shivek Labs Limited under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The Adjudicating Authority perused the application filed in Form 6 and found it complete

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**Interpretation:** Section 10 of the IBC provides the mechanism for a corporate debtor to initiate

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**Application:** In this case, the application filed by Shivek Labs Limited was found to be

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## Parties

- **Judges:** R.P.Nag…
- **Respondents:** Shivek Labs…

## Timeline

- **2003-02-10 — Company Incor…**: Shivek Labs Limited was incorporated…
- **2016-08-10 — SARFAESI Notic…**: Punjab National Bank issued a notice under Section 13(2) of the SARFAESI Act, 2002, for…

## 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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