# In the matter of K. Sailendra, S/o. Subramanyam & Ors. vs. Aayusiddhi Life Sciences Private Limited & Ors.

> NCLAT judgment dated 2023-10-04. Citation: TCN-2023-NCLAT-00149. This is an appeal against the Impugned Order dated 13/02/2020 passed in C.P.(IB) No.…

- **Court:** NCLAT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLAT-00149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/k-sailendra-so-subramanyam-ors-vs-aayusiddhi-life-sciences-private-limited-ors-4e46b53f

## Summary

### Background

This is an appeal against the Impugned Order dated 13/02/2020 passed in C.P.(IB) No. 454/7/HDB/2018 by the National Company Law Appellate Tribunal, Hyderabad Bench, by which the Adjudicating Authority admitted the application preferred by the Respondents/Financial Creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s. Aayusiddhi Life Sciences Private Limited/the Appellant/the Corporate Debtor. The Corporate Debtor was incorporated as M/s V.K. Drugs Private Limited on 17/05/2006. The Adjudicating Authority admitted the application based on the Corporate Debtor's balance sheet, which showed the Petitioners as unsecured related party creditors.

## Facts

The Corporate Debtor, M/s. Aayusiddhi Life Sciences Private Limited, faced a Section 7 application under the Insolvency and Bankruptcy Code, 2016. The application was filed by the Respondents, who claimed to be Financial Creditors. The Adjudicating Authority admitted the application based on the Corporate Debtor's balance sheet, which showed the Petitioners as unsecured related party creditors. The Appellant challenged this order, arguing that the claim was based on fraudulent entries in the financial statements and that the Respondents had previously filed and withdrawn a similar application. The Appellant also filed C.A. 162/130/HDB/2019 under Section 130 of the Companies Act, 2013, seeking the reopening of the books of accounts. The Respondents claimed that the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application based on fraudulent …

**Ratio:** The principle is that the Adjudicating Authority should consider all relevant factors,

…

**Reasoning:** The NCLAT found that the Adjudicating Authority did not adequately consider the

…

**Interpretation:** This means that the Adjudicating Authority must carefully examine all evidence

…

**Application:** In this case, the NCLAT found that the Adjudicating Authority did not

…

## Parties

- **Judges:** M. Venu…; Shreesha…
- **Appellants:** K. SAIL…
- **Respondents:** Aayusiddhi Life…

## Timeline

- **2006-05-17 — Company Incor…**: Corporate Debtor Company was…
- **2017-05-16 — First Section 7…**: Respondents filed a Section 7 Application, namely C.P.(IB) No. 81/7/HBD/2017, which was…

## 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/nclat-new-delhi/k-sailendra-so-subramanyam-ors-vs-aayusiddhi-life-sciences-private-limited-ors-4e46b53f