# 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-00477. The case pertains to a company petition filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-pneumatics-private-limited-company-petition-no-ib-616-nd-2018-5fba1744

## Summary

### Background

The case pertains to a company petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by M/s Deepak Pneumatics Private Limited, the Corporate Debtor, 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 Corporate Debtor is desirous of implementing a debt restructuring plan.

## Facts

M/s Deepak Pneumatics Private Limited, incorporated on 26.06.1969, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The company defaulted in liquidating its debts, exceeding the minimum default amount of Rs. One lakh. The company applied to the Labour Commissioner Faridabad, Haryana for closure of the establishment, which was allowed w.e.f. 06.05.1999. A union review was rejected on 23.09.1999. A writ petition was dismissed by the High Court of Punjab and Haryana. At the time of closure, there were 110 employees, and the Corporate Debtor settled the claim of 86 workers. Mr. Deepak Khosla, a shareholder, provided Rs. 17,66,456/-, becoming a Financial Creditor. The applicant affirmed it was not disqualified

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## Issues and analysis

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

**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 found that all requirements prescribed under

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**Interpretation:** Section 10 of the IBC outlines the process and requirements for a corporate

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**Application:** The court found that the application was complete, as the Corporate Debtor had

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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 Limited was…
- **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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