# In the matter of SSMP Industries Ltd. CP No. (IB)-236-(PB)-2018

> NCLT judgment dated 2018-09-07. Citation: TCN-2018-NCLT-00799. SSMP Industries Limited, the corporate applicant, filed a petition under Section 10 of the…

- **Court:** NCLT
- **Order date:** 7 Sept 2018
- **Citation:** TCN-2018-NCLT-00799
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ssmp-industries-ltd-cp-no-ib-236-pb-2018-168d2d98

## Summary

### Background

SSMP Industries Limited, the corporate applicant, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. The company was incorporated in 2007 and engaged in manufacturing and exporting fruit pulp, drinks, and concentrates. It faced financial difficulties due to exchange rate fluctuations affecting its pre-shipment credit in foreign currency, leading to reduced borrowing limits and fund flow. The Oriental Bank of Commerce classified the company's account as Non-Performing Asset (NPA). The applicant requested the bank to de-link their borrowing facility pertaining to pre-shipment credit in foreign currency, but it was not done, resulting in business losses. The applicant proposed Shri Sumit

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## Facts

SSMP Industries Limited, incorporated in 2007, engaged in manufacturing and exporting fruit products. It had two financial creditors: Oriental Bank of Commerce and Kotak Mahindra Prime Limited. In 2009, the company requested credit facilities from IndusInd Bank, which were later taken over by Oriental Bank of Commerce in 2012. Due to exchange rate increases, the company's pre-shipment credit in foreign currency was adversely affected, leading to financial difficulties. Oriental Bank of Commerce classified the company's account as NPA on 01.06.2017. The company requested the bank to de-link their borrowing facility pertaining to pre-shipment credit in foreign currency, but it was not done. The company incurred losses due to the spoilage of perishable goods. The company

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## Issues and analysis

### Issue 1: Whether the petition filed by the corporate debtor, SSMP Industries Limited, under Section 10 of …

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

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**Reasoning:** The court examined the details provided in the petition, including the financial

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

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**Application:** The court applied Section 10 to the facts of the case, noting that SSMP

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Respondents:** M/s SSMP Industrie…; Kotak Mahindra…
- **Advocates:** Neha G…; Amit K…; +2 more

## Timeline

- **2007-09-28 — Incorporation of SSMP…**: SSMP Industries Limited was…
- **2009-01-01 — Request for Credit…**: The applicant requested IndusInd Bank for sanctioning of credit facilities for export…

## 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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