# M/s Sical Iron Ore Terminal (Mangalore) Limited vs. Assistant Commissioner (State Tax)

> NCLT judgment dated 2026-08-07. Citation: TCN-2026-NCLT-00858. M/s Sical Iron Ore Terminal (Mangalore) Limited, the Corporate Debtor, filed an application…

- **Court:** NCLT
- **Order date:** 7 Aug 2026
- **Citation:** TCN-2026-NCLT-00858
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/ms-sical-iron-ore-terminal-mangalore-limited-vs-assistant-commissioner-6mf31

## Summary

### Background

M/s Sical Iron Ore Terminal (Mangalore) Limited, the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against itself. The application was based on its inability to discharge a statutory GST demand of Rs. 7,11,19,324/- for the financial year 2018-19, raised by the Assistant Commissioner (State Tax), which had attained finality. The Corporate Debtor claimed its business could not commence due to a ban on iron ore export, leading to no business activity and significant losses, rendering it unable to meet its financial obligations.

## Facts

M/s Sical Iron Ore Terminal (Mangalore) Limited (Corporate Debtor) filed an application under Section 10 of IBC, 2016, for Corporate Insolvency Resolution Process (CIRP) against itself.

The Corporate Debtor was incorporated on 09.10.2009 under the provisions of the Companies Act, 1956.

Smt. Rongali Sridevi was proposed as the Interim Resolution Professional (IRP).

The sole Operational Creditor is the Assistant Commissioner (State Tax) (GST).

A statutory demand of Rs. 7,11,19,324/- (including tax, interest, and penalty) for GST liability for FY 2018-19 was raised by the Assistant Commissioner (State Tax) via an assessment order dated 26.04.2024.

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant has established the existence of default and satisfied the …

**Ratio:** An application under Section 10 of the IBC, 2016, must be admitted if the corporate

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**Reasoning:** The Corporate Applicant demonstrated a default of Rs. 7,11,19,324/- (GST demand for FY

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**Interpretation:** Section 10 focuses on the existence of debt and default and compliance with

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**Application:** The NCLT found that the FY 2018-19 GST demand, having attained finality and

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Respondents:** M/s Sical Iron…; Assistant…
- **Other parties:** S Raja…; Rongali S…; +1 more
- **Advocates:** Surya Teja SS…; Tulesh Ba…

## Timeline

- **2009-10-09 — Incorporation of…**: M/s Sical Iron Ore Terminal (Mangalore) Limited was incorporated under the Companies Act,…
- **2017-07-01 — Start of GST demand…**: Period for which GST demand was raised by…

## 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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