# In the matter of Deepak Pneumatics Private Limited Company Petition No. (IB)-616 (ND)-2018

> NCLT judgment dated 2018-10-26. Citation: TCN-2018-NCLT-00485. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-pneumatics-private-limited-company-petition-no-ib-616-nd-2018-0eb01474

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by M/s Deepak Pneumatics Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company was incorporated in 1969. The application was filed due to the company's inability to liquidate its debts, which exceeded the minimum default amount of Rs. One lakh. The board of directors authorized the filing of the application to overcome the distress situation and restructure the company. Prior to this application, K.G Khosla Compressors Limited was taken over by Kirloskar Pneumatics Co. Limited, leading to a tool-down strike by workmen and a subsequent lockout.

## Facts

M/s Deepak Pneumatics Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company was incorporated on June 26, 1969. The application was prompted by the company's inability to liquidate its debts, which exceeded the minimum default amount of Rs. One lakh as specified under Section 4 of the Code. The Board of Directors authorized the filing of the application via a resolution dated May 30, 2018, to address the company's distress and explore restructuring options. Prior to this, K.G Khosla Compressors Limited was taken over by Kirloskar Pneumatics Co. Limited, leading to labor unrest and a factory lockout in 1998. The Corporate Debtor applied to the

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## Issues and analysis

### Issue 1: Whether the application under Section 10 of the …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 is a complete Code in itself, and its provisions

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**Reasoning:** The Adjudicating Authority found that the application was complete, and a default had

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**Interpretation:** The completeness of the application is a prerequisite for its admission under

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**Application:** The Adjudicating Authority reviewed the application and supporting documents

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## Parties

- **Judges:** Ina Mal…; Deepa Kr…; +1 more
- **Respondents:** M/s Deepak…

## Timeline

- **1969-06-26 — Company Incor…**: M/s Deepak Pneumatics Private…
- **1998-07-02 — Tool Down…**: Workmen went on a Tool Down Strike…

## 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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