# In the matter of Turbo Metals Private Limited C.P. (IB) -1566-(MB)-2018

> NCLT judgment dated 2019-01-15. Citation: TCN-2019-NCLT-05239. Turbo Metals Private Limited filed a Company Petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Jan 2019
- **Citation:** TCN-2019-NCLT-05239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/turbo-metals-private-limited-cp-ib-1566-mb-2018-ab275df9

## Summary

### Background

Turbo Metals Private Limited filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process. The Corporate Applicant's registered office is located in Kadivili, Taluka Wada, District Palghar. The shareholders passed a Special Resolution in an Extra Ordinary General Meeting held on 07.06.2018 to file the application. The Corporate Applicant disclosed outstanding dues of Rs. 50,49,85,283/- to Financial Creditors and Rs. 4,13,67,415/- to Operational Creditors. Bank of India had previously filed an application against the Corporate Applicant before the debt recovery Tribunal No. 1 Mumbai, seeking a decree for Rs. 41,83,37,661/-.

## Facts

Turbo Metals Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company's registered office is in Kadivili, Palghar. A special resolution was passed on 2018-06-07 to file the application. The company owes Rs. 50,49,85,283 to financial creditors and Rs. 4,13,67,415 to operational creditors. Bank of India had previously filed a case against the company for recovery of Rs. 41,83,37,661. The company submitted financial statements for 2016-17 and 2017-18, along with a list of assets, liabilities, creditors, and security details. Mr. Shailesh Bhalchandra Desai was proposed as the Interim Resolution Professional. The court found that the company had defaulted and admitted the petition, declaring a moratorium.

## Issues and analysis

### Issue 1: Whether the Corporate Applicant has committed a default as required under Section 10 of the …

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

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**Reasoning:** The Bench, after reviewing the petition and supporting documents, found that the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** The Corporate Applicant's disclosure of outstanding dues to creditors

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Turbo Metals…

## Timeline

- **2010-09-28 — Incorporation of…**: Turbo Metals Private Limited…
- **2018-06-07 — Special Resolution…**: Shareholders of Turbo Metals Private Limited passed a Special Resolution for filing an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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