# In the matter of Twenty First Century Wire Rods Ltd. CP No. (IB)-737-(PB)-2018

> NCLT judgment dated 2018-09-12. Citation: TCN-2018-NCLT-00775. The case pertains to an application filed by Twenty First Century Wire Rods Limited under…

- **Court:** NCLT
- **Order date:** 12 Sept 2018
- **Citation:** TCN-2018-NCLT-00775
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/twenty-first-century-wire-rods-ltd-cp-no-ib-737-pb-2018-70a34d1f

## Summary

### Background

The case pertains to an application filed by Twenty First Century Wire Rods Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The company acknowledged its financial distress and inability to meet its contractual obligations to creditors, including IDBI Bank and Kotak Mahindra Bank. The application was filed before the National Company Law Tribunal (NCLT), New Delhi.

## Facts

Twenty First Century Wire Rods Limited, incorporated on 08.10.1996, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against itself. The company's identification number is CIN-U27100DL1996PLC082467, and its registered office is in New Delhi. The company has two financial creditors: IDBI Bank Limited and ING Vyasa Bank Limited. It entered into a Deed of Hypothecation with IDBI Bank on 15.09.2008 for a credit facility of Rs. 3200 lakh. The company also mortgaged properties in Goa and Mumbai on 30.03.2009. Further credit facilities were obtained from IDBI Bank on 16.12.2009 and 15.04.2010. The company renewed its credit facility with IDBI Bank on 16.03.2011 for Rs.

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## Issues and analysis

### Issue 1: Whether the pendency of a winding-up petition before the High Court and an Original Application …

**Ratio:** The pendency of proceedings under the SARFAESI Act is no bar to the admission of a

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**Reasoning:** The tribunal reasoned that there is no provision in Section 10 of the Code creating a bar

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP. Section 11

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**Application:** In this case, since the winding-up petition was not admitted and no Provisional

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Respondents:** Twenty First…; Kotak Mahindra…

## Timeline

- **1996-10-08 — Incorporation o…**: Twenty First Century Wire…
- **2008-09-15 — Deed of Hypothecation…**: Entered into a Deed of Hypothecation with IDBI Bank for a credit facility of Rs. 3200…

## 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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