# In the matter of Blue Whale Machinery Technologies Pvt. Ltd. C.P.(IB)No. 159-BB-2020

> NCLT judgment dated 2020-07-10. Citation: TCN-2020-NCLT-01044. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 10 Jul 2020
- **Citation:** TCN-2020-NCLT-01044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blue-whale-machinery-technologies-pvt-ltd-cpibno-159-bb-2020-e0eb3ac1

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the I&B (Application to Adjudicating Authority) Rules, 2016, by M/s. Blue Whale Machinery Technologies Pvt. Ltd., represented by its Director, Mr. Deepak Dhirajlal Mehta, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company claims to have defaulted on a total amount of Rs. 18,01,59,144/-, including dues to Financial Creditors (Rs. 11,23,40,812/-) and Operational Creditors (Rs. 6,78,18,332/-). The company was incorporated on 19.11.2007 and faced financial difficulties leading to a demand notice under the SARFAESI Act from Karur Vysya Bank Limited for Rs. 6.49 Crore.

## Facts

M/s. Blue Whale Machinery Technologies Pvt. Ltd. was incorporated on 19.11.2007. The company faced financial difficulties, leading to defaults on payments to both Financial and Operational Creditors. As of the date of the application, the total default amounted to Rs. 18,01,59,144/-, with Rs. 11,23,40,812/- owed to Financial Creditors and Rs. 6,78,18,332/- owed to Operational Creditors. The company received a demand notice under the SARFAESI Act from Karur Vysya Bank Limited for Rs. 6.49 Crore on 31.12.2019. The company's financial statements revealed that its liabilities far exceeded its assets. A special resolution was passed by the shareholders on 18th January 2020, approving the filing of the application under Section 10 of the IBC, 2016. The company's authorized

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, meets …

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

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**Reasoning:** The Adjudicating Authority considered the financial statements, statement of affairs, and

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**Interpretation:** Section 10 of the IBC, 2016, provides a mechanism for a corporate debtor to

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**Application:** In this case, the Adjudicating Authority applied the provisions of Section 10

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Deepak Dhirajlal…
- **Respondents:** M/s. Blue Whale…

## Timeline

- **2007-11-19 — Company Incor…**: M/s. Blue Whale Machinery…
- **2019-12-31 — Demand Notice under…**: Company received Demand Notice under SARFAESI Act from Karur Vysya Bank Limited demanding…

## 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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