# In the matter of Shree Shankar Saw Mill Private Limited C.P. (I.B) No. 101-KB-2021

> NCLT judgment dated 2022-01-27. Citation: TCN-2022-NCLT-04360. Shree Shankar Saw Mill Private Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLT-04360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-shankar-saw-mill-private-limited-cp-ib-no-101-kb-2021-eeb15638

## Summary

### Background

Shree Shankar Saw Mill Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company defaulted on payments to State Bank of India, leading to its account being declared NPA on September 27, 2014. The company also defaulted on payments to unsecured financial creditors and operational creditors. The application was supported by a board resolution dated February 18, 2021, and consent from members via a resolution passed on March 15, 2021.

## Facts

Shree Shankar Saw Mill Private Limited (CIN: U20101WB2002PTC094455) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The company's account with State Bank of India was declared a Non-Performing Asset (NPA) on September 27, 2014, due to defaults in payment. The company also defaulted on payments to unsecured financial creditors from March 19, 2010, and operational creditors from September 18, 2013. The total debt owed to secured financial creditors was Rs. 32,31,74,415, to unsecured financial creditors was Rs. 15,10,150, and to operational creditors was Rs. 5,65,17,881. The application was filed through its Director, Mr. Ankit Patel, authorized by a Board Resolution dated

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## Issues and analysis

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

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate applicant to

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**Reasoning:** The Adjudicating Authority considered the facts presented in the application and the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** The Adjudicating Authority admitted the application based on the established

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** Shree Shankar Saw…

## Timeline

- **2002-04-04 — Incorporation of…**: Shree Shankar Saw Mill…
- **2010-03-19 — Default to Unsecured…**: Corporate Applicant defaulted in payment of…

## 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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