# In the matter of Aircel Cellular Limited CP(IB)300-MB-2018

> NCLT judgment dated 2018-03-19. Citation: TCN-2018-NCLT-01685. Aircel Cellular Limited, the Corporate Applicant, filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 19 Mar 2018
- **Citation:** TCN-2018-NCLT-01685
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aircel-cellular-limited-cpib300-mb-2018-b4bd71c1

## Summary

### Background

Aircel Cellular Limited, the Corporate Applicant, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor sought to be declared insolvent, referring to the Reserve Bank of India's (RBI) guidelines issued on February 12, 2018, regarding the resolution of stressed assets. The application was filed due to the company's inability to run its business effectively due to financial constraints and pressing demands from creditors. An intervener, GTL Infrastructure Limited, an operational creditor, approached the court seeking to be a party to the litigation, citing a pending case in the Delhi High Court where Aircel was restrained from disposing of its assets.

## Facts

Aircel Cellular Limited filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP). The company cited financial difficulties and the need to restructure its stressed assets, referring to the Reserve Bank of India's (RBI) guidelines on resolving stressed assets. The company's bank account, a Trust and Retention Account (TRA), was frozen by the banks, hindering its operations and ability to pay staff. GTL Infrastructure Limited, an operational creditor, sought to intervene, citing a pending case in the Delhi High Court where Aircel was restrained from disposing of its assets. Aircel had outstanding debts, including long-term facilities from the State Bank of India and

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the IBC should be …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The court found that the Corporate Debtor had financial and operational debts and had

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**Interpretation:** Section 10 of the IBC provides an opportunity for a corporate debtor facing

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**Application:** The court applied the provisions of Section 10 of the IBC to the facts of the

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Aircel Cellular…

## Timeline

- **2016-01-01 — Enactment of Insolvency…**: The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to consolidate and amend the…
- **2018-02-12 — RBI Guide…**: Reserve Bank of India (RBI) issued guidelines (RBI/2017-18/131) addressed to all…

## 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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