# In the matter of Educomp Solutions Ltd. CP No. (IB)-101-(PB)-2017

> NCLT judgment dated 2017-05-30. Citation: TCN-2017-NCLT-00840. The document pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 May 2017
- **Citation:** TCN-2017-NCLT-00840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/educomp-solutions-ltd-cp-no-ib-101-pb-2017-6e88e39c

## Summary

### Background

The document pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Educomp Solutions Ltd. The application was reviewed to ensure compliance with the requirements of Section 10 of the IBC. The applicant provided information regarding the books of accounts and proposed an interim insolvency professional. Statements of Banks Accounts were presented, disclosing the status of the respondent (Educomp Solutions Ltd.) in the Banks accounts. The details of default were evident from the financial statement for the financial year 2016. The total debt reliable from 14 banks and other NBFC was shown to be Rs. 2785 crore which includes the interest. The other unpaid debt of

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## Facts

Educomp Solutions Ltd. faced financial difficulties, leading to an application under Section 10 of the IBC to initiate CIRP. The company had significant debt, with Rs. 2785 crore owed to 14 banks and other NBFCs, including interest. Additionally, the company had unpaid debt to operational creditors exceeding 124 crores. The applicant provided bank statements and financial records as evidence of the company's financial status. The proposed Interim Resolution Professional (IRP) was Dr. Sanjeev Aggarwal, against whom no disciplinary proceedings were pending. The respondents' counsel did not oppose the admission of the petition. The key fact is the company's inability to meet its financial obligations, triggering the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the requirements of Section 10 of the Insolvency and Bankruptcy Code (IBC) have been met …

**Ratio:** Section 10 of the IBC allows a corporate applicant to initiate CIRP if it meets certain

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**Reasoning:** The court reviewed the application and supporting documents, including bank statements

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**Interpretation:** Section 10 of the IBC is interpreted to mean that if a corporate applicant can

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**Application:** In this case, the court applied the ratio to the facts presented and determined

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## Parties

- **Judges:** M. M. K…; Deepa Kr…; +1 more
- **Respondents:** Educomp Solutions…; Vivek S…

## Timeline

- **2017-05-16 — Matter Consid…**: The matter came for consideration before the court, and notices were issued to all the…
- **2017-05-30 — Order Da…**: The court admitted the petition, appointed Dr. Sanjeev Aggarwal as the 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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