# In the matter of Siddhi Vinayak Power Generation and Distributors Pvt. Ltd. CP No. (IB)-531-(ND)-2018

> NCLT judgment dated 2018-08-10. Citation: TCN-2018-NCLT-00951. The case pertains to an application filed by M/s Siddhi Vinayak Power Generation and…

- **Court:** NCLT
- **Order date:** 10 Aug 2018
- **Citation:** TCN-2018-NCLT-00951
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siddhi-vinayak-power-generation-and-distributors-pvt-ltd-cp-no-ib-531-nd-2018-8096ddd4

## Summary

### Background

The case pertains to an application filed by M/s Siddhi Vinayak Power Generation and Distributors Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The applicant company, incorporated in 2011, sought CIRP due to a distress situation and to restructure its debts. The company had availed loan facilities from Punjab National Bank (PNB) and faced difficulties in fulfilling a Gas Supply Agreement, leading to its loan account being declared a Non-Performing Asset (NPA).

## Facts

M/s Siddhi Vinayak Power Generation and Distributors Private Limited (SVPG 1) was incorporated on 19.05.2011. The company availed loan facilities from Punjab National Bank (PNB). The company entered into a Gas Supply Agreement with Oil and Natural Gas Corporation in 2013 but was unable to produce the desired level of power, leading to the termination of the agreement on 19.02.2016. The loan account with PNB became a Non-Performing Asset (NPA) on 30.09.2013. The company admitted to committing a default exceeding one lakh, as fixed under Section 4 of the Code. The company filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The application was supported by a Board Resolution

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 10(4)(a) of the Code mandates the Adjudicating Authority to admit the application

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**Reasoning:** The Adjudicating Authority was satisfied that the present application is complete and

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**Interpretation:** The completeness of the application is a prerequisite for its admission under

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**Application:** The Adjudicating Authority reviewed the application and found it to be

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** M/s Siddhi…
- **Respondents:** Siddhi Vinayak…; Nishi Cha…

## Timeline

- **2011-05-19 — Incorpor…**: M/s Siddhi Vinayak Power Generation and…
- **2013-01-01 — Gas Supply Ag…**: The Corporate Applicant entered into a Gas Supply Agreement with Oil and Natural Gas…

## 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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