# In the matter of DCS International Private Limited C.P. (IB) No. 42-BB-2017

> NCLT judgment dated 2017-11-17. Citation: TCN-2017-NCLT-00183. The case involves a Company Petition filed on behalf of DCS International Private Limited, the…

- **Court:** NCLT
- **Order date:** 17 Nov 2017
- **Citation:** TCN-2017-NCLT-00183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dcs-international-private-limited-cp-ib-no-42-bb-2017-bdf1e8fd

## Summary

### Background

The case involves a Company Petition filed on behalf of DCS International Private Limited, the Corporate Debtor, under Section 10 of the Insolvency and Bankruptcy Code 2016. The Corporate Debtor was unable to pay its dues, leading to a default of Rs.10,65,18,254/- to its creditors. The Board of Directors passed a resolution to initiate Corporate Insolvency Resolution Process. The application was admitted, a moratorium was declared, and an Interim Resolution Professional (IRP) was appointed.

## Facts

DCS International Private Limited, the Corporate Debtor, defaulted on payments of Rs. 10,65,18,254 to its creditors. The Board of Directors resolved to initiate Corporate Insolvency Resolution Process (CIRP). The application was admitted on July 10, 2017, and a moratorium was declared. Thirupal Gorige was appointed as the Interim Resolution Professional (IRP). The IRP submitted a list of creditors, including Syndicate Bank, Ms. Anupama Sathyesh, Ms. Durgapameshwari Pedamale, Mr. Sathyesh Marakakini, and Shakthi clothing Pvt. Ltd. The Committee of Creditors (CoC) was formed, and meetings were held. The CoC determined that no resolution plan was viable and proposed liquidation. The Resolution Professional reported that Reliance Retails Limited, one of the debtors, paid

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its payments to creditors, justifying the initiation of …

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

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**Reasoning:** The Corporate Debtor was unable to pay its dues, leading to a default of

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

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**Application:** The Corporate Debtor's inability to pay its debts and the subsequent resolution

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## Parties

- **Judges:** Ratakonda…; Ashok Kumar…; +1 more
- **Respondents:** DCS International…

## Timeline

- **2017-05-29 — Board Reso…**: The Board of Directors of the Corporate Debtor passed a resolution to initiate Corporate…
- **2017-07-10 — Application A…**: The application was admitted, a moratorium was declared, and an Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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