# In the matter of U.B. Engineering Ltd C.P. 01- I&BP- NCLT-MAH-2017

> NCLT judgment dated 2017-01-18. Citation: TCN-2017-NCLT-00991. U.B. Engineering Limited, the corporate debtor, filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 18 Jan 2017
- **Citation:** TCN-2017-NCLT-00991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ub-engineering-ltd-cp-01-ibp-nclt-mah-2017-a0390ebb

## Summary

### Background

U.B. Engineering Limited, the corporate debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP). The company was originally incorporated as 'Western India Errectors Private Limited' and subsequently changed its name to 'UB Engineering Limited'. The company obtained financial assistance from various financial institutions, including Axis Bank and Corporation Bank. Corporation Bank, the lead bank of the consortium, issued a letter to the corporate debtor demanding payment of outstanding dues. The corporate debtor admitted to being unable to pay its debts and filed the application for CIRP.

## Facts

U.B. Engineering Limited, initially 'Western India Errectors Private Limited', sought Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The company received financial aid from institutions like Axis Bank (₹69.00 crores) and Corporation Bank (₹594.78 crores). Corporation Bank, leading a consortium including IDBI Bank, Lakshmi Vilas Bank, and Yes Bank, demanded ₹116,79,87,385 on 2014-10-09. The company admitted its inability to pay, prompting the CIRP application. The company created charges over its assets in favor of the financial institutions. A notice was issued under the SARFAESI Act. The applicant submitted communication from the proposed interim resolution professional. Financial statements were provided

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## Issues and analysis

### Issue 1: Whether the corporate debtor, U.B. Engineering Limited, has met the requirements under Section 10 …

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

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**Reasoning:** The court reasoned that the corporate debtor had borrowed funds from a consortium of

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**Interpretation:** Section 10 provides a mechanism for corporate debtors facing financial distress

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**Application:** In this case, the court found that the corporate debtor had committed a default

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Respondents:** U.B. Engineering…

## Timeline

- **1970-01-12 — Incorpor…**: Corporate applicant debtor was incorporated in the name of 'Western India Errectors…
- **1993-10-21 — Name Cha…**: Name of the Company was changed…

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