# In the matter of Brahmaputra Tubulars Pvt. Ltd. C.P. (IB)No.21-GB-2022

> NCLT judgment dated 2022-10-28. Citation: TCN-2022-NCLT-00598. The case involves an application filed by Brahmaputra Tubulars Pvt. Ltd. under Section 10 of…

- **Court:** NCLT
- **Order date:** 28 Oct 2022
- **Citation:** TCN-2022-NCLT-00598
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/brahmaputra-tubulars-pvt-ltd-cp-ibno21-gb-2022-120697ff

## Summary

### Background

The case involves an application filed by Brahmaputra Tubulars Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The company is engaged in the manufacturing, supply, import, and export of steel and special steel, primarily serving the North Eastern States of India. The company faced substantial financial losses over several years, leading to its classification as a non-performing asset (NPA) by its major financial creditors, State Bank of India (SBI) and North Eastern Development Finance Corporation Ltd. (NEDFi).

## Facts

Brahmaputra Tubulars Pvt. Ltd., incorporated on 08.10.2012, filed an application under Section 10 of the IBC seeking CIRP initiation against itself. The company is in the business of manufacturing, supplying, importing, and exporting steel and special steel, primarily serving the North Eastern States of India. The company incurred substantial losses from FY 2019-20 to FY 2021-22, resulting in cumulative losses of Rs. 5,62,952.22 as of 31.03.2022. SBI classified the company's credit facilities as NPA on 16.02.2014, and NEDFi did so on 01.07.2014. SBI initiated actions under the SARFAESI Act, 2002, and recovered Rs. 16,00,16,118 from the sale of secured assets. The total financial debt raised was Rs. 72.47 Crores, with a default of Rs. 63.69 Crores. The company's key

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## 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 has

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**Reasoning:** The Adjudicating Authority considered the materials and papers filed by both the

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

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**Application:** The court found that the Corporate Debtor had provided all necessary

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## Parties

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

## Timeline

- **2012-10-08 — Incorporation of…**: M/s. Brahmaputra Tubulars…
- **2014-02-16 — SBI classifies account…**: State Bank of India (SBI) classified the Petitioner's credit facilities as non-performing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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