# In the matter of Stainless Work Private Limited

> NCLT judgment dated 2023-11-01. Citation: TCN-2023-NCLT-00899. The case pertains to a Company Petition (CP(IB) No. 208/MB/2019) filed by Stainless Work…

- **Court:** NCLT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLT-00899
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stainless-work-private-limited-6a08ca42

## Summary

### Background

The case pertains to a Company Petition (CP(IB) No. 208/MB/2019) filed by Stainless Work Private Limited under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The corporate debtor, Stainless Works Private Limited, was incorporated on 11.09.1996. The company defaulted on payments to its financial creditor, Standard Chartered Bank, despite receiving notices and a One Time Settlement (OTS) offer. The application was filed on April 27, 2018.

## Facts

Stainless Work Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The corporate debtor was incorporated on 11.09.1996. The first default occurred on March 24, 2015, when the Corporate Debtor received a notice from Standard Chartered Bank for defaulting on repayment of a Cash Credit facility and Term Loan. A subsequent notice was issued on July 17, 2015, under Section 13(2) of the SARFAESI Act, seeking recovery of INR 11,57,43,775.73. The Financial Creditor revoked a One Time Settlement (OTS) offer on July 7, 2017, with an outstanding amount of INR 15,43,15,144.57. The application to initiate CIRP was filed on April 27, 2018. The Corporate Debtor had

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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 IBC allows a corporate debtor to initiate CIRP if it meets the

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**Reasoning:** The NCLT found that the application was complete in all respects and that the Corporate

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**Interpretation:** Section 10 provides a mechanism for corporate debtors to initiate CIRP when

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**Application:** The NCLT applied the provisions of Section 10 to the facts of the case and

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Respondents:** Stainless Work…
- **Advocates:** Kajal So…

## Timeline

- **1996-09-11 — Incorporation of…**: Stainless Works Private…
- **2015-03-24 — First Default…**: The Corporate Debtor received a notice from Standard Chartered Bank for defaulting on…

## 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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