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

> NCLT judgment dated 2017-05-30. Citation: TCN-2017-NCLT-00837. 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-00837
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/educomp-solutions-ltd-cp-no-ib-101-pb-2017-9f5c663b

## 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) for Educomp Solutions Ltd. The application was reviewed to ensure compliance with the requirements of Section 10, including the provision of necessary information regarding the company's accounts. The applicant presented bank statements showing the respondent's status, details of which were provided in annexure-3. The financial statement for 2016 (annexure-5) revealed evidence of default. The total debt from 14 banks and other NBFCs was reported as Rs. 2785 crore, including interest, with an additional unpaid debt to operational creditors of over 124 crores (annexure-3, page-60). Dr. Sanjeev Aggarwal

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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 a total debt of Rs. 2785 crore from 14 banks and NBFCs, including interest, and an additional unpaid debt of over 124 crores to operational creditors. The application included bank statements and financial statements as evidence of default. Dr. Sanjeev Aggarwal was proposed as the Interim Resolution Professional (IRP). Creditor banks were notified, and there was no opposition to the petition's admission. Respondents 1 to 12 and 15, represented by Mr. Hemant Raj Phalpher, accounted for more than 90% of the loan advanced. The applicant had furnished the information regarding the books of accounts and proposed the name of an interim

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## Issues and analysis

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

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

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**Reasoning:** The court found that the averments made in the petition showed that all the requirements

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** In this case, the court applied the ratio to the facts by finding that the

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Respondents:** Educomp Solutions…; Vivek S…

## Timeline

- **2017-05-16 — Matter Consid…**: The matter came for consideration, and notices were issued to all the creditor banks who…
- **2017-05-30 — Order Da…**: The order was passed admitting the petition and initiating the Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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