# In the matter of Vaman Textiles Pvt. Ltd. CP (IB)No. 309-10-NCLT-AHM-2018

> NCLT judgment dated 2020-05-26. Citation: TCN-2020-NCLT-01323. The case pertains to an application filed by Vaman Textiles Pvt. Ltd. under Section 10 of the…

- **Court:** NCLT
- **Order date:** 26 May 2020
- **Citation:** TCN-2020-NCLT-01323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vaman-textiles-pvt-ltd-cp-ibno-309-10-nclt-ahm-2018-00c1a1e5

## Summary

### Background

The case pertains to an application filed by Vaman Textiles Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's inability to pay its debts to financial creditors, sundry creditors, and statutory authorities. Punjab National Bank, a financial creditor, objected to the petition, arguing that the company's account had been classified as NPA and that the bank had already initiated SARFAESI proceedings to recover its dues. The bank contended that the company's application was an attempt to stall these recovery proceedings. The Corporate Applicant submitted that its registered office is situated at 17, Shanti Vihar Society, Magob,

…

## Facts

Vaman Textiles Pvt. Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company's registered office is located in Surat, Gujarat. The authorized share capital of the company is Rs. 35,00,000, and the paid-up share capital is Rs. 31,98,730. The company disclosed that it had defaulted in making payments to its financial creditors, sundry creditors, and other statutory authorities. The total debt raised and amount in default was Rs. 16,44,32,858, including Rs. 4,97,35,595 to Punjab National Bank, Rs. 9,62,87,370 to the Income Tax Department, and Rs. 1,84,09,893 to sundry creditors. Punjab National Bank (PNB), a financial creditor, objected to the application,

…

## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the Insolvency and …

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code (IBC) has an overriding effect over

…

**Reasoning:** The NCLT relied on precedents from the Supreme Court and NCLAT, which established that if

…

**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC's provisions take

…

**Application:** In this case, the NCLT held that the pendency of SARFAESI proceedings initiated

…

## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Respondents:** Vaman Textiles…; Punjab National…

## Timeline

- **2015-03-31 — Account Classified as…**: Punjab National Bank classified the account of Vaman Textiles Pvt. Ltd. as a…
- **2016-07-26 — Demand Notice…**: Authorized Officer of Financial Creditor issued Demand Notice on 26.07.2016 u/s. 13(2) of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/vaman-textiles-pvt-ltd-cp-ibno-309-10-nclt-ahm-2018-00c1a1e5