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

> NCLT judgment dated 2017-12-22. Citation: TCN-2017-NCLT-00011. 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-00011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tayo-rolls-limited-cp-ib-no-398-kb-2017-d5eb8cac

## Summary

### Background

The case involves an application under Section 10(1) of the Insolvency & Bankruptcy Code, 2016, filed by Tayo Rolls Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor 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of Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act (SICA), but SICA was later repealed.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 application was filed after the statutory time limit prescribed under the SICA Repeal Act, 2003, had expired.

## Facts

Tayo Rolls Limited, a Listed Public Non-Governmental Company, filed an application under Section 10(1) of the Insolvency & Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The company had defaulted on amounts due to its non-related party Financial Creditors, except for penal interest of Rs.60.04 lakhs. It had also raised financial debts from non-related party Financial Creditors, except for non-fund based liability aggregating to Rs.602.87 lakhs and penal interest of Rs.60.04 lakhs. The Corporate Debtor owed Rs.7043.29 lakhs to its holding company, Tata Steels Ltd. The company was unable to pay wages and related dues to its workmen since October 2016, amounting to Rs. 1149.49 lakhs. The Corporate Debtor had received more than

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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 sub-clause (b) of the Sick Industrial Companies (Special Provisions) Repeal

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**Reasoning:** The court reasoned that the Corporate Applicant's reference case no.48/2016 was pending

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**Interpretation:** The court interpreted the SICA Repeal Act to mean that companies with abated

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**Application:** The court applied this interpretation to the facts of the case, noting that the

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Respondents:** Tayo Rolls…
- **Advocates:** Mr Ratnanko…; Mr Soorjya…; +10 more

## Timeline

- **2016-02-12 — Board Me…**: Board of Directors of the Corporate Debtor 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 10(1) — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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