# In the matter of Mittal Lumber Pvt. Ltd. Company Petition No. IB-237-PB-2021

> NCLT judgment dated 2023-05-24. Citation: TCN-2023-NCLT-03214. The case involves an application filed by M/s. Mittal Lumber Pvt. Ltd. under Section 10 of the…

- **Court:** NCLT
- **Order date:** 24 May 2023
- **Citation:** TCN-2023-NCLT-03214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mittal-lumber-pvt-ltd-company-petition-no-ib-237-pb-2021-2453844b

## Summary

### Background

The case involves an application filed by M/s. Mittal Lumber Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of the corporate insolvency resolution process. The company, incorporated in 1991, availed multiple loans from Corporation Bank in 2014. Due to financial difficulties, the company defaulted on loan repayments from June 2016 onwards. Corporation Bank had previously filed an application for recovery in 2017, and the Corporate Applicant also filed a Securitization Application in 2017. The Corporate Applicant then filed the present application for corporate insolvency resolution.

## Facts

M/s. Mittal Lumber Pvt. Ltd. (the Corporate Applicant) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the corporate insolvency resolution process. The company was incorporated on 28.02.1991 as a Public Limited company. In 2014, the company availed multiple loans from Corporation Bank, including buyer's credit. The total debt raised from Corporation Bank amounted to Rs. 6,30,29,223.00. From June 2016, the company defaulted on loan repayments due to financial difficulties. Corporation Bank filed an application for recovery of the loan amount on 12th January 2017. The Corporate Applicant also filed a Securitization Application under section 17(1) of the SARFAESI Act 2002 in the Debts Recovery Tribunal at Lucknow in

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

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**Reasoning:** The Adjudicating Authority observed that the present application was filed on the

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**Interpretation:** The legal interpretation is that an application under Section 10 must adhere to

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**Application:** The Adjudicating Authority applied this ratio by examining the application and

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## Parties

- **Judges:** SHRI. BACHU…; RAHUL BHA…
- **Respondents:** M/s. Mittal…

## Timeline

- **1991-02-28 — Company Incor…**: M/s. Mittal Lumber Pvt. Ltd. was…
- **2014-01-01 — Loan Avai…**: The Corporate Applicant availed…

## 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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