# In the matter of Adhils Builders and Developers Pvt. Ltd. IBA-45-KOB-19

> NCLT judgment dated 2019-11-28. Citation: TCN-2019-NCLT-00406. The case involves an application filed by Ashraf Abdulla Kunju, a Corporate Applicant, under…

- **Court:** NCLT
- **Order date:** 28 Nov 2019
- **Citation:** TCN-2019-NCLT-00406
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adhils-builders-and-developers-pvt-ltd-iba-45-kob-19-c9089103

## Summary

### Background

The case involves an application filed by Ashraf Abdulla Kunju, a Corporate Applicant, under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Adhils Builders and Developers Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 07.12.2011 and had changed its name from Ashkab Builders and Developers Private Limited on 18.05.2016. The application was filed based on a special resolution dated 20.09.2019. The Corporate Debtor had availed a cash credit limit of ₹5,00,00,000/- from State Bank of Travancore under the MSMSE Vyapar Mithra Scheme, secured by hypothecation of stock. Due to slow economic conditions and trade practices, the Corporate Debtor faced difficulties

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## Facts

Ashraf Abdulla Kunju, a Corporate Applicant, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Adhils Builders and Developers Private Limited, the Corporate Debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was incorporated on 07.12.2011 and previously known as Ashkab Builders and Developers Private Limited until 18.05.2016. The application was supported by a special resolution dated 20.09.2019. The Corporate Debtor availed a cash credit limit of ₹5,00,00,000/- from State Bank of Travancore under the MSMSE Vyapar Mithra Scheme, secured by hypothecation of stock. The Corporate Debtor faced repayment difficulties due to adverse economic conditions, despite having repaid ₹2.29 crores.

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the Insolvency and …

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

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**Reasoning:** The bench examined the application and found it to be complete. The Financial Creditor

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**Interpretation:** Section 10 provides a mechanism for a corporate entity facing financial

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**Application:** The application was deemed complete as it met the requirements of Section 10.

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## Parties

- **Judges:** Ashok Kumar…; Veera Brahma Rao…
- **Appellants:** Ashraf Abdulla…
- **Respondents:** ADHILS BUILDERS…; India La…

## Timeline

- **2011-12-07 — Incorporation of…**: The Corporate Debtor, Adhils Builders and…
- **2016-05-18 — Name Cha…**: The Corporate Debtor changed its name from Ashkab Builders and Developers Private Limited…

## 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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