# In the matter of U R Sinter Private Limited IA Nos.475 & 595-2021 And CP (IB) No.197-Chd-HP-2021

> NCLT judgment dated 2023-01-04. Citation: TCN-2023-NCLT-05192. The case involves a petition filed by UR Sinter Private Limited, the corporate debtor, under…

- **Court:** NCLT
- **Order date:** 4 Jan 2023
- **Citation:** TCN-2023-NCLT-05192
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/u-r-sinter-private-limited-ia-nos475-595-2021-and-cp-ib-no197-chd-hp-2021-5f945d7a

## Summary

### Background

The case involves a petition filed by UR Sinter Private Limited, the corporate debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The corporate debtor's account with Kangra Central Co-operative Bank Ltd. was declared NPA due to business recession in 2019. The State Taxes and Excise Department also issued GST demand orders and sealed the factory premises, attaching movable and immovable assets. The corporate debtor claims inability to repay its liabilities and seeks relief from the Adjudicating Authority.

## Facts

UR Sinter Private Limited filed a petition under Section 10 of the IBC, 2016, seeking to initiate CIRP. The company's account was declared NPA by Kangra Central Co-operative Bank Ltd. on 01.11.2019 due to business recession in 2019. The State Taxes and Excise Department issued GST demand orders on 20.05.2019 and 23.04.2021. The factory premises were sealed, and assets were attached on 30.07.2021. An auction notice was issued on 03.09.2021. The company's nominal and paid-up share capital is ₹4,40,00,000/-. The company is engaged in manufacturing and exporting chaff cutter machines and spare parts. Kangra Central Co-operative Bank Ltd. sanctioned a loan of 19.50 Cr on 09.04.2015. The State Taxes and Excise Department claimed ₹30,40,72,355.065/- towards GST for the years

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## Issues and analysis

### Issue 1: Whether the application under Section 10 of the IBC, 2016, filed by the corporate debtor is …

**Ratio:** The Adjudicating Authority is bound to admit the application if it is complete and the

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**Reasoning:** The Adjudicating Authority noted that all the information required in terms of Section 10

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**Interpretation:** Section 10 of the IBC, 2016, allows a corporate debtor to initiate CIRP if it

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Respondents:** UR Sinter Private…; Office of State…

## Timeline

- **2015-04-09 — Loan Sanc…**: Kangra Central Co-operative Bank Ltd. sanctioned a loan of 19.50 Cr to UR Sinter Private…
- **2019-11-01 — Account Decla…**: The account of UR Sinter Private Limited was declared NPA by Kangra Central Co-operative…

## 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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