# In the matter of Brahmaputra Galvochem Pvt. Ltd. C.P. (IB) No. 15-GB-2022

> NCLT judgment dated 2022-11-18. Citation: TCN-2022-NCLT-00393. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Nov 2022
- **Citation:** TCN-2022-NCLT-00393
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/brahmaputra-galvochem-pvt-ltd-cp-ib-no-15-gb-2022-163a5ad9

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by Brahmaputra Galvochem Pvt. Ltd., the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The State Bank of India (SBI), the major financial creditor, classified the petitioner's credit facilities as non-performing assets (NPA) on 27.06.2014 and issued a notice under the SARFAESI Act, 2002. The Corporate Debtor incurred substantial losses over several financial years, eroding its paid-up share capital and reserves. The company faced financial stress due to operational losses, interest costs, and lack of working capital. SBI initiated recovery actions under SARFAESI and the Recovery of Debts and Bankruptcy Act, 1993.

## Facts

Brahmaputra Galvochem Pvt. Ltd. (Corporate Debtor) filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company is engaged in the manufacturing of galvanizing of steel tubes and pipes. The State Bank of India (SBI) classified the Corporate Debtor's credit facilities as Non-Performing Assets (NPA) on 27.06.2014 and issued a notice under the SARFAESI Act, 2002. The Corporate Debtor incurred substantial losses, amounting to Rs. 7,44,759.40 as on 31.03.2022, eroding its paid-up share capital and reserves. The total dues payable to SBI as on 31.03.2022 were Rs. 2,19,26,543.00. SBI initiated recovery actions under SARFAESI and the Recovery of Debts and

…

## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the IBC is complete and …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP against itself if it

…

**Reasoning:** The Adjudicating Authority considered the materials and submissions made by the Corporate

…

**Interpretation:** Section 10 of the IBC provides a mechanism for corporate debtors facing

…

**Application:** The Adjudicating Authority applied the provisions of Section 10 of the IBC to

…

## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Respondents:** M/s. Brahmaputra…; State Bank of…

## Timeline

- **2014-06-27 — Classificatio…**: State Bank of India (SBI) classified the petitioner's credit facilities as non-performing…
- **2014-07-05 — SARFAESI…**: SBI issued Sec. 13(2) notice…

## 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-division-bench-court-i-chenn/brahmaputra-galvochem-pvt-ltd-cp-ib-no-15-gb-2022-163a5ad9