# In the matter of Baaskaran S Vs Nclt

> HC judgment dated 2023-08-16. Citation: TCN-2023-HC-00043. The case involves a writ petition filed in the High Court of Karnataka at Bengaluru concerning…

- **Court:** HC
- **Order date:** 16 Aug 2023
- **Citation:** TCN-2023-HC-00043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/baaskaran-s-vs-nclt-1b9597cc

## Summary

### Background

The case involves a writ petition filed in the High Court of Karnataka at Bengaluru concerning proceedings under the Insolvency and Bankruptcy Code (IBC). The petitioner, Mr. Baaskaran, challenges the continuation of corporate insolvency resolution process (CIRP) against a corporate debtor, arguing that it falls within the prohibited period under Section 10A of the IBC. The Registrar of the National Company Law Tribunal (NCLT), Bangalore Bench, ACE Enviro Tech Pvt. Ltd., and Mr. Venkata Subbarao Kalva, the Interim Resolution Professional (IRP), are the respondents.

## Facts

Mr. Baaskaran, a director of Tarun Realtors Private Limited, filed a writ petition challenging the continuation of CIRP against a corporate debtor. The Registrar of NCLT Bangalore, ACE Enviro Tech Pvt. Ltd., and the IRP, Mr. Venkata Subbarao Kalva, are the respondents. The petitioner argues that the CIRP initiation is barred by Section 10A of the IBC, as the default falls within the prohibited period. The petitioner's counsel argued that no notice of demand was served, and even if served, the sum due would amount to a default only after ten days, as stipulated under Section 9 of the IBC. The respondent's counsel requested time, indicating a likelihood of settlement. The key fact is the applicability of Section 10A of the IBC, which suspends CIRP initiation for defaults

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## Issues and analysis

### Issue 1: Whether the initiation of the corporate insolvency resolution process (CIRP) is barred by Section …

**Ratio:** Section 10A of the IBC suspends the initiation of CIRP for defaults arising on or after

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**Reasoning:** The court considered the petitioner's argument that the demand falls within the

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**Interpretation:** Section 10A is interpreted as a temporary suspension of CIRP initiation to

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**Application:** The court applied the principle of Section 10A to the facts of the case,

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## Parties

- **Judges:** G.NARE…; VIJAYAKUMAR.A.PATI…
- **Appellants:** MR BAASKA…
- **Respondents:** THE REGI…
- **Advocates:** Srinand…; Anish Ac…; +2 more

## Timeline

- **2023-08-02 — Writ Petitio…**: Writ petition filed in the…
- **2023-08-16 — Court Or…**: The High Court ordered a stay of further…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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