# In the matter of VNR Infra Metals Private Limited C.P (IB) 13-10-HBD- 2017

> NCLT judgment dated 2017-03-03. Citation: TCN-2017-NCLT-00959. The case pertains to a Company Petition (CP(IB) No. 13/10/HDB/2017) filed by VNR Infra Metals…

- **Court:** NCLT
- **Order date:** 3 Mar 2017
- **Citation:** TCN-2017-NCLT-00959
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vnr-infra-metals-private-limited-cp-ib-13-10-hbd-2017-13a3b984

## Summary

### Background

The case pertains to a Company Petition (CP(IB) No. 13/10/HDB/2017) filed by VNR Infra Metals Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner, VNR Infra Metals Private Limited, was originally incorporated as VNR Logistics Private Limited and later changed its name in 2014. The company's main business involves trading and acting as agents in metals, minerals, and infrastructure development.

## Facts

VNR Infra Metals Private Limited filed a Company Petition (CP(IB) No. 13/10/HDB/2017) under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The company, previously known as VNR Logistics Private Limited, changed its name in 2014. The company's primary business involves trading in metals, minerals, and infrastructure development. As of the petition filing date, the defaulted dues to financial creditors amounted to Rs.88.33 crores, including principal and interest. Financial creditors had initiated recovery proceedings under Section 13(4) of the SARFAESI Act, 2002, leading the Corporate Debtor to file a petition before the Debt Recovery Tribunal (DRT), Hyderabad. The Board of Directors

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by VNR Infra Metals Private Limited under Section 10 of the IBC …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 7 of the

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**Reasoning:** The court considered the submissions of the Learned Counsel, the defaulted dues of the

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**Interpretation:** Section 10 of IBC provides the corporate applicant the right to initiate CIRP

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**Application:** The court applied Section 10 of the IBC and Rule 7 of the Insolvency and

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## Parties

- **Judges:** Rajeswara Rao…; RavikumarDu…
- **Respondents:** VNR Infra Metals…

## Timeline

- **2016-09-22 — Notice under Section…**: Financial creditors served notices under…
- **2017-02-17 — Board Me…**: Board of Directors proposed to appoint Mr. Arun Kumar Malani as the Interim Resolution…

## 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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