# In the matter of Byrnihat Coal Private Limited C.P (IB) No. 20-GB-2021

> NCLT judgment dated 2022-04-01. Citation: TCN-2022-NCLT-03427. Byrnihat Coal Private Limited, the Corporate Debtor/Applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/byrnihat-coal-private-limited-cp-ib-no-20-gb-2021-5d8e8f6d

## Summary

### Background

Byrnihat Coal Private Limited, the Corporate Debtor/Applicant, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company was incorporated on March 4, 2005, and is registered as an MSME. The company's authorized share capital is Rs. 1,20,00,000, and the paid-up share capital is Rs. 1,17,85,000. The Corporate Applicant submitted that as of August 23, 2021, it had outstanding debts to various creditors, including Sharma & Sons Corporation, R.S.H Agro Products Limited, Naresh Kumar Harlalka, and Punjab National Bank. The Corporate Applicant faced financial distress due to a ban on coal mining imposed by the Hon'ble Supreme Court of India and the

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## Facts

Byrnihat Coal Private Limited filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of CIRP against itself. The company was incorporated on March 4, 2005, and is registered as an MSME. As of August 23, 2021, the Corporate Applicant had outstanding debts to various creditors, including Sharma & Sons Corporation (Rs. 15,00,000.00), R.S.H Agro Products Limited (Rs. 21,60,000.00), Naresh Kumar Harlalka (Rs. 5,10,000.00), and Punjab National Bank (Rs. 6,43,84,315.89 Cash Credit and Rs. 42,63,078.00 CFITL). The Corporate Applicant faced financial distress due to a ban on coal mining imposed by the Hon'ble Supreme Court of India and the Covid-19 pandemic. Punjab National Bank (PNB) issued a notice under Section 13(2) of

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency & …

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

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**Reasoning:** The Adjudicating Authority found that the Corporate Applicant had availed loan/credit

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

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**Application:** In this case, the Adjudicating Authority was satisfied that the Corporate

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## Parties

- **Judges:** Rohit K…; Prasanta Kumar…; +1 more
- **Respondents:** Byrnihat Coal…; Sharma & Sons…

## Timeline

- **2005-03-04 — Company Incor…**: Byrnihat Coal Private…
- **2015-02-07 — Credit Facility…**: Punjab National Bank sanctioned a credit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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