# In the matter of Suvarna Karnataka Cements Pvt. Ltd. CP. No. 15-BB-17

> NCLT judgment dated 2017-04-28. Citation: TCN-2017-NCLT-00879. Suvarna Karnataka Cements Private Limited filed a Company Petition under Section 10 of the…

- **Court:** NCLT
- **Order date:** 28 Apr 2017
- **Citation:** TCN-2017-NCLT-00879
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suvarna-karnataka-cements-pvt-ltd-cp-no-15-bb-17-07205b51

## Summary

### Background

Suvarna Karnataka Cements Private Limited filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process. The Corporate Debtor stated that it was incorporated on November 6, 2006, with its registered office in Bangalore. The company's board of directors authorized Mr. Virendra Bagle to file the application. The Corporate Debtor is in default for more than 6 years, with a total sum due to Financial Creditors of Rs.41.22 Crores.

## Facts

Suvarna Karnataka Cements Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process. The company was incorporated on November 6, 2006, with a registered office in Bangalore. The company's authorized share capital is Rs.2,00,00,000. The company is in default for more than 6 years, with a total debt of Rs.41.22 Crores owed to financial creditors. The company has three financial creditors: SVC Cooperative Bank, SREI Equipment Finance Limited, and L&T Fincorp Limited. SVC Cooperative Bank assigned its financial assets to Reliance Asset Reconstruction Company Limited. The Board of Directors authorized Mr. Virendra Bagle to file the application. Mr. Sandeep Kumar Gupta is

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## Issues and analysis

### Issue 1: Whether the application filed by Suvarna Karnataka Cements Private Limited under Section 10 of the …

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

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**Reasoning:** The court considered the contention of the counsel for the Petitioner Company that the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The court found that the Corporate Debtor had defaulted on payments to its

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## Parties

- **Judges:** Ratakonda…; Ashok Kumar…
- **Respondents:** Suvarna Karnataka…
- **Advocates:** Mr.Shamant…

## Timeline

- **2006-11-06 — Incorpor…**: Suvarna Karnataka Cements…
- **2016-09-15 — SARFAESI Ass…**: SVC Cooperative Bank assigned its financial assets to Reliance Asset Reconstruction…

## 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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