# In the matter of NYS Granites Impex Private Limited  CP (IB) No.04-BB-2022

> NCLT judgment dated 2023-06-02. Citation: TCN-2023-NCLT-03090. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Jun 2023
- **Citation:** TCN-2023-NCLT-03090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nys-granites-impex-private-limited-cp-ib-no04-bb-2022-0ee397c8

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016 by M/s NYS Granites Impex Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) in respect of itself. The company claimed a total default amount of Rs. 17,03,82,517/-. Karnataka State Financial Corporation, a secured financial creditor, opposed the application, stating that the Corporate Applicant's loan account showed overdues of Rs. 1,793.94 lakhs as on 10.04.2022, even after the sale of plant, machinery, and collateral security. The Financial Creditor had taken possession of the primary security property and initiated action under the SARFAESI Act. The Corporate Applicant had availed term loans in 2013-2014, but due to

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## Facts

M/s NYS Granites Impex Private Limited, the Corporate Applicant, filed an application under Section 10 of the IBC, 2016, seeking initiation of CIRP. The company was incorporated on 28.02.2012. The total amount in default was Rs. 17,03,82,517/-. The Corporate Applicant is engaged in the business of manufacturing and selling granite products. It availed term loans in 2013-2014 for establishing a medium-scale industry. Due to restrictions on mining operations in Karnataka and market fluctuations, the business suffered. The Corporate Applicant was unable to service its repayment obligations, and the loan accounts were declared as non-performing assets on 30.04.2015. The Financial Creditor, Karnataka State Financial Corporation, issued a SARFAESI notice on 18.10.2016 and

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## Issues and analysis

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

**Ratio:** As per Section 10 of the IBC, a Corporate Applicant can file an application before the

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**Reasoning:** The Adjudicating Authority considered the provisions of Section 10 of the IBC and the

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

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**Application:** In this case, the Corporate Applicant had filed the application under Section

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Respondents:** M/s NYS Granites…; Karnataka State…

## Timeline

- **2021-11-02 — Filing of CP (IB)…**: The present petition, CP (IB) 04/BB/2022, is filed by M/s NYS Granites Impex Private…
- **2011-07-01 — Restrictions on Mining…**: Impositions of restrictions by the Hon'ble Supreme Court on undertaking mining operation…

## 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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