# In the matter of Nashik Forge Private Limited IA-725-2023 IN IA-3709 & 3710-2022 in CP-IB-469-(MB)-2021

> NCLT judgment dated 2023-04-28. Citation: TCN-2023-NCLT-03568. The case involves a Company Petition filed under Section 10 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 28 Apr 2023
- **Citation:** TCN-2023-NCLT-03568
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nashik-forge-private-limited-ia-725-2023-in-ia-3709-3710-2022-in-cp-ib-469-mb-20-08fe33a3

## Summary

### Background

The case involves a Company Petition filed under Section 10 of the Insolvency & Bankruptcy Code, 2016, by Nashik Forge Private Limited ("Corporate Debtor") seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company petition was filed on 03.02.2021, and the credit facility with State Bank of India was classified as NPA on 31.08.2019. The Corporate Debtor was incorporated on 26th May 2005. They availed loan facilities from State Bank of Bikaner & Jaipur (later merged into State Bank of India (SBI)) for an aggregate amount of Rs.3,37,00,000/- on 03.03.2009, which was later enhanced and modified. Due to economic downturn and negative effects in the automobile industry, the Corporate Debtor failed to pay loan installments and was

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## Facts

Nashik Forge Private Limited (Corporate Debtor) filed a petition under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company's credit facility with State Bank of India (SBI) was classified as NPA on 31.08.2019. The Corporate Debtor was incorporated on 26th May 2005. They availed loan facilities from State Bank of Bikaner & Jaipur (later merged into SBI) for Rs.3,37,00,000/- on 03.03.2009, which was later enhanced to Rs.8,98,00,000/- on 09.04.2019. Due to economic downturn and negative effects in the automobile industry, the Corporate Debtor failed to pay loan installments and was declared NPA on 31.08.2019. As of 02.12.2019, the total outstanding amount to SBI was

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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 Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to

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**Reasoning:** The court found that the Corporate Debtor had enclosed the necessary information relating

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**Interpretation:** Section 10 of the IBC provides a mechanism for a corporate debtor to initiate

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**Application:** The court applied the provisions of Section 10 of the IBC to the facts of the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Respondents:** Nashik Forge…

## Timeline

- **2005-05-26 — Incorporation of…**: The Corporate Debtor, Nashik Forge…
- **2009-03-03 — Loan Facility…**: The Corporate Debtor availed a loan facility from State Bank of Bikaner & Jaipur (later…

## 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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