# 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-03430. Byrnihat Coal Private Limited, the Corporate Debtor/Applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/byrnihat-coal-private-limited-cp-ib-no-20-gb-2021-6095e3e1

## 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 Corporate Debtor faced financial distress due to a ban on coal mining imposed by the Hon'ble Supreme Court of India and the Covid-19 pandemic, leading to its inability to repay its debts. Punjab National Bank (PNB), a financial creditor, issued a notice under Section 13(2) of the SARFAESI Act, 2002, declaring the Corporate Debtor's cash credit account as a non-performing asset. The Corporate Debtor's board of directors decided to initiate proceedings under

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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 Debtor 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 and Rs. 42,63,078.00). The Corporate Debtor faced financial distress due to a ban on coal mining imposed by the Hon'ble Supreme Court of India and the Covid-19 pandemic, leading to its inability to repay its debts. Punjab National Bank (PNB), a financial

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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(3) of the IBC requires the Corporate Applicant to comply with certain

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had furnished the necessary

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP against

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**Application:** The Adjudicating Authority determined that the Corporate Debtor's application

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## Parties

- **Judges:** RohitKa…; Prasanta Kumar…
- **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 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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