# In the matter of Vee Ess Forgings Private Limited CP-1039-IB-2018

> NCLT judgment dated 2019-03-04. Citation: TCN-2019-NCLT-04601. The case involves an application filed by M/s. Vee Ess Forgings Private Limited, the Corporate…

- **Court:** NCLT
- **Order date:** 4 Mar 2019
- **Citation:** TCN-2019-NCLT-04601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vee-ess-forgings-private-limited-cp-1039-ib-2018-5d202f33

## Summary

### Background

The case involves an application filed by M/s. Vee Ess Forgings Private Limited, the Corporate Debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application is supported by a special resolution passed by the shareholders of the Corporate Debtor. The Financial Creditor, Indian Overseas Bank, raised objections to the admission of the application.

## Facts

M/s. Vee Ess Forgings Private Limited, the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is engaged in the manufacture of forged and machined components for various industries. The Corporate Debtor is reeling under financial crisis and is unable to service its debt. The outstanding debt owed by the Corporate Debtor to the Financial Creditors is Rs.1,42,37,534/-. The Corporate Debtor has placed on record the provisional profit and loss statement as on 30.06.2018, showing a loss of Rs.78,39,867/-. Indian Overseas Bank, the Financial Creditor, has raised objections to the admission of the application. The Corporate Debtor has

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by the …

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

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**Reasoning:** The court considered the documents placed on record, including the Corporate Debtor's

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

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**Application:** The court applied Section 10 to the facts of the case and found that the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Respondents:** VEE ESS FORGINGS…; Indian Overseas…

## Timeline

- **2018-06-30 — Provisional Profit and…**: The Corporate Debtor's provisional profit and loss statement shows a loss of…
- **2018-08-03 — Email from Indian…**: Indian Overseas Bank sent an email to the…

## 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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