# In the matter of Shamik Enterprises Private Limited CP (IB) 4362-MB-2018

> NCLT judgment dated 2022-02-03. Citation: TCN-2022-NCLT-04272. The case involves a petition filed by Hindustan Candle Manufacturing Co. Pvt. Ltd. (Financial…

- **Court:** NCLT
- **Order date:** 3 Feb 2022
- **Citation:** TCN-2022-NCLT-04272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shamik-enterprises-private-limited-cp-ib-4362-mb-2018-70187147

## Summary

### Background

The case involves a petition filed by Hindustan Candle Manufacturing Co. Pvt. Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Shamik Enterprises Private Limited (Corporate Debtor). The Financial Creditor alleges that the Corporate Debtor defaulted in making payments against Inter Corporate Deposits (ICDs). The Corporate Debtor raised objections regarding the maintainability of the petition, compliance with Section 7 of the Code, and alleged tampering of the Board Resolution submitted as authorization for initiating CIRP.

## Facts

Hindustan Candle Manufacturing Co. Pvt. Ltd. (Financial Creditor) advanced amounts to Shamik Enterprises Private Limited (Corporate Debtor) as Inter Corporate Deposits (ICDs) between February 2013 and February 2017. The ICDs were repayable with interest at 12% p.a. The Corporate Debtor made some payments, but a significant amount remained unpaid. As of October 31, 2018, the total amount claimed to be in default was Rs. 31,70,49,730/-. The Corporate Debtor renewed the ICDs periodically and issued letters acknowledging the debt. The Corporate Debtor also made part payments towards interest. The Corporate Debtor raised objections regarding the maintainability of the petition, compliance with Section 7 of the Code, and alleged tampering of the Board Resolution. The

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor is maintainable under Section 7 of the …

**Ratio:** A general authorization issued by the Financial Creditor in favor of officers is

…

**Reasoning:** The NCLT relied on the NCLAT's decision in Palogix Infrastructure Private Limited v/s

…

**Interpretation:** The interpretation is that a general authorization is sufficient for initiating

…

**Application:** The court applied this principle to the case, stating that the Corporate Debtor

…

## Parties

- **Judges:** SUCHITRAKAN…; Shyam Babu…
- **Appellants:** Hindustan Candle…
- **Respondents:** Shamik Enterprises…

## Timeline

- **2013-02-01 — ICD Adva…**: Financial Creditor advanced ICDs to Corporate…
- **2014-03-31 — Outstanding…**: Amount of Rs. 1,39,00,000/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shamik-enterprises-private-limited-cp-ib-4362-mb-2018-70187147