# In the matter of P.L. Industries Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03074. P.L. Industries Private Limited filed an application under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pl-industries-private-limited-72200c0a

## Summary

### Background

P.L. Industries Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The application was filed after approval from the shareholders via a special resolution dated 19.11.2022. The company, incorporated on 03.09.2013, faced financial difficulties due to the COVID-19 pandemic, leading to the shutdown of its food processing unit and subsequent losses. Canara Bank, a financial creditor, opposed the application, citing irregularities and suppression of facts. The bank had initiated recovery proceedings before the Debt Recovery Tribunal and SARFAESI Act proceedings.

## Facts

P.L. Industries Private Limited, a private limited company incorporated on 03.09.2013, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company operated a food processing unit in Assam, which faced financial difficulties due to the COVID-19 pandemic in 2019, leading to the shutdown of its operations and significant losses. The company had availed loan facilities from Canara Bank, which initiated recovery proceedings before the Debt Recovery Tribunal and SARFAESI Act proceedings due to non-payment of dues. The bank declared the loan accounts as Non-Performing Assets (NPA) on 31.03.2022. The company's application was supported by a special resolution

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## Issues and analysis

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

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP against itself if it

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**Reasoning:** The NCLT considered the objections raised by the financial creditor but found that the

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**Interpretation:** Section 10 of the IBC provides a mechanism for corporate debtors facing

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**Application:** In this case, the NCLT found that the corporate applicant had established the

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## Parties

- **Judges:** H.V. Subb…; Satya Ranjan…
- **Respondents:** P.L. Industries…; Canara…

## Timeline

- **2013-09-03 — Company Incor…**: P.L Industries Private…
- **2018-01-01 — Food Processing Unit…**: The Corporate Applicant set up a…

## 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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