# In the matter of Chiraayush Stock Consultants Private Limited Company Petition No. (IB)-266-10-JPR-2019

> NCLT judgment dated 2020-11-25. Citation: TCN-2020-NCLT-00209. The case pertains to an application filed by Chiraayush Stock Consultants Private Limited under…

- **Court:** NCLT
- **Order date:** 25 Nov 2020
- **Citation:** TCN-2020-NCLT-00209
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chiraayush-stock-consultants-private-limited-company-petition-no-ib-266-10-jpr-2-5003ff43

## Summary

### Background

The case pertains to an application filed by Chiraayush Stock Consultants Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant company, incorporated on 18.12.2006, claimed default in repayment of its debts. The application was filed by Mr. Anil Kumar Gupta, authorized by a Board Resolution dated 03.08.2019. The company aimed to overcome its distress situation and restructure its debts through the CIRP.

## Facts

Chiraayush Stock Consultants Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 18.12.2006. The application was filed by Mr. Anil Kumar Gupta, authorized by a Board Resolution dated 03.08.2019. The company has 5 secured creditors. As of 31st March 2019, the total amount in default was Rs. 17,16,18,548/-. The corporate debtor placed demand letters issued by financial creditors as proof of default. The applicant affirmed that it is not disqualified under Section 11 of the Code. The company also filed copies of audited financial statements for the financial years 2017-18 and 2018-19 and provisional statements. The applicant

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## Issues and analysis

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

**Ratio:** Section 10(4)(a) of the Code mandates the Adjudicating Authority to admit the application

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**Reasoning:** The court reviewed the application and the documents submitted, including financial

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

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**Application:** The court applied the ratio to the facts of the case, noting that the applicant

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## Parties

- **Judges:** P.S.N. P…; RAGHU N…; +1 more
- **Respondents:** CHIRAAYUSH STOCK…

## Timeline

- **2006-12-18 — Incorporation o…**: Chiraayush Stock Consultants Private Limited was incorporated under the Companies Act,…
- **2019-03-31 — Default A…**: The total amount in default…

## 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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