# in the matter of Vedika Nut Craft Pvt. Ltd. CP No. (IB) 40-PB-2017

> NCLT judgment dated 2017-06-30. Citation: TCN-2017-NCLT-00772. The case involves a petition filed by M/s. Vedika Nut Craft Private Limited under Section 10 of…

- **Court:** NCLT
- **Order date:** 30 Jun 2017
- **Citation:** TCN-2017-NCLT-00772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vedika-nut-craft-pvt-ltd-cp-no-ib-40-pb-2017-8996259c

## Summary

### Background

The case involves a petition filed by M/s. Vedika Nut Craft Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The company, incorporated in 2008, is engaged in processing dry fruits, cashew nuts, and pistachios. It achieved significant turnover in FY 2011-12 and FY 2013-14. However, financial stress arose due to market factors, leading to restructuring in March 2015. Banks allegedly did not fully implement the restructuring package, resulting in the company's account being classified as a non-performing asset (NPA) on 30.06.2016. Allegations include the bank's failure to release agreed-upon credit limits. The company faced operational difficulties due to a steep fall in

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## Facts

M/s. Vedika Nut Craft Private Limited, incorporated on June 13, 2008, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company processes dry fruits, cashew nuts, and pistachios. Its turnover reached Rs.241.24 crores in FY 2011-12 and Rs.379.06 crores in FY 2013-14. Financial stress led to restructuring in March 2015, but banks allegedly did not fully implement the approved restructuring package, classifying the account as NPA on June 30, 2016. The company alleges that banks did not release a promised credit trench of Rs.5.24 crores and a LC limit of Rs.4.34 crores. A steep fall in almond prices from Rs.800/- to Rs.500/- per kilo impacted the company's operations, resulting in

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## Issues and analysis

### Issue 1: Whether the petition filed by the corporate debtor under Section 10 of the Insolvency and …

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

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**Reasoning:** The court examined the petition and the submissions made by both parties. It considered

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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:** CHIEF JUSTICE…; R. VARADH…
- **Respondents:** M/s. Vedika Nut…; Union Bank of…
- **Advocates:** P. Na…; Dhruv Dev…; +2 more

## Timeline

- **2008-06-13 — Incorporation o…**: M/s. Vedika Nut Craft Private…
- **2015-03-01 — Restructuring o…**: Company's account was…

## 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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