# In the matter of Tayo Rolls Limited CP (IB) No. 398-KB-2017

> NCLT judgment dated 2017-12-22. Citation: TCN-2017-NCLT-00007. The case involves an application under Section 10(1) of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 22 Dec 2017
- **Citation:** TCN-2017-NCLT-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tayo-rolls-limited-cp-ib-no-398-kb-2017-39c7ebae

## Summary

### Background

The case involves an application under Section 10(1) of the Insolvency & Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Tayo Rolls Limited. The application was filed by Mr. Suresh Padmanabhan, Deputy Chief Financial Officer of Tayo Rolls Ltd., authorized by a Board Resolution. Tayo Rolls Limited, facing financial difficulties, had previously been referred to the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act (SICA), but SICA was later repealed. The corporate debtor defaulted on payments to financial creditors and was unable to pay wages and related dues to its workmen since October 2016.

## Facts

Tayo Rolls Limited, a listed public non-governmental company, faced financial difficulties and defaulted on its obligations. The company owed Rs. 7043.29 lakhs to its holding company, Tata Steels Ltd., and was unable to pay wages and related dues to its workmen since October 2016, amounting to Rs. 1149.49 lakhs. The company also owed Rs. 5544.98 lakhs to its trade creditors. Prior to the IBC application, Tayo Rolls Limited had been referred to the Board of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act (SICA). However, SICA was repealed, and the reference before BIFR abated. The Corporate Applicant, Mr. Suresh Padmanabhan, Deputy Chief Financial Officer of Tayo Rolls Ltd., filed an application under Section 10 of the Insolvency

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## Issues and analysis

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

**Ratio:** Section 4(b) of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003,

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**Reasoning:** The court reasoned that the Corporate Applicant's reference before BIFR had abated due to

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**Interpretation:** The court interpreted Section 4(b) of the SICA Repeal Act, 2003, strictly,

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** Mr Suresh…
- **Respondents:** Tayo Rolls…

## Timeline

- **2016-02-12 — Board Me…**: Board of Directors of Tayo Rolls Limited decided to refer the Corporate Debtor to the…
- **2016-02-29 — Reference t…**: Corporate Debtor made a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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