# In the matter of J.R. Foods Limited CP(IB)-84(CHE)-2021

> NCLT judgment dated 2022-02-11. Citation: TCN-2022-NCLT-04164. The case pertains to an application filed by JR Foods Limited under Section 10 of the…

- **Court:** NCLT
- **Order date:** 11 Feb 2022
- **Citation:** TCN-2022-NCLT-04164
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jr-foods-limited-cpib-84che-2021-8d63301f

## Summary

### Background

The case pertains to an application filed by JR Foods Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's default in meeting its financial obligations to its Financial Creditors. Vijaya Bank (now Bank of Baroda) objected to the application, stating that it was an attempt to circumvent the SARFAESI Act, 2002, process already initiated by them. The applicant had previously filed a similar petition which was dismissed.

## Facts

JR Foods Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 20.08.1993. The application was filed due to a default in meeting financial obligations to creditors. The total amount of default was Rs. 53,38,06,704/- as on 02.01.2019. Vijaya Bank (now Bank of Baroda) had issued a notice dated 30.03.2019 intimating a default of Rs. 35,88,73,191.65/- under Section 13(2) of the SARFAESI Act, 2002. Vijaya Bank objected to the application, arguing that it was an attempt to circumvent the SARFAESI process. A previous application under Section 10 had been dismissed on 08.05.2020. The applicant argued that the dismissal order was communicated

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## Issues and analysis

### Issue 1: Whether the present application under Section 10 of the IBC is maintainable despite the ongoing …

**Ratio:** Section 238 of the IBC overrides other laws, including the SARFAESI Act, 2002. The

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**Reasoning:** The court relied on the decision of the Hon'ble Appellate Tribunal in "Unigreen

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC takes precedence

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**Application:** In this case, the court found that the requirements of Section 10 of the IBC

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Respondents:** JR Foods L…; Mr.R.Imayav…
- **Advocates:** Mr.A.S.Sathish…; Mr.R.Imayav…

## Timeline

- **1993-08-20 — Incorporation of…**: JR Foods Limited was…
- **2019-01-02 — Date of D…**: Total amount of default…

## 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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