# In the matter of Glister Hospitality Gurgaon Private Limited CP (IB) No. 261-Chd-Hry-2019

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02429. Glister Hospitality Gurgaon Private Limited filed a petition under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/glister-hospitality-gurgaon-private-limited-cp-ib-no-261-chd-hry-2019-08e43521

## Summary

### Background

Glister Hospitality Gurgaon Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company, incorporated on 15.07.2014, operates in the hospitality sector. The petition was filed due to the company's inability to pay its debts, including rent to lessors and operational creditors. The corporate debtor's authorized and paid-up share capital is ₹1,00,000/- each. The petition was filed by Mr. Guru Dutt, Director, authorized by a board resolution dated 26.02.2019. The company's financial statements indicated a complete loss of net worth for the financial years 2017-18 and 2018-19.

## Facts

Glister Hospitality Gurgaon Private Limited, incorporated on 15.07.2014, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company's registered office is in Gurgaon, Haryana. The authorized and paid-up share capital is ₹1,00,000/- each. The petition was filed by Director Mr. Guru Dutt, authorized by a board resolution dated 26.02.2019. The company executed a lease deed on 23.07.2014 with Endure Reality Pvt. Ltd. for an area of 7118 sq. ft. to run a restaurant. The corporate debtor contributed over ₹90 lacs as an unsecured loan to build the restaurant. Due to competition and staff shortages, the company struggled, failing to pay rent exceeding ₹23 lacs. The lessor sent an e-mail

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency and …

**Ratio:** Section 10(4) of the IBC states that the Adjudicating Authority shall admit the

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**Reasoning:** The court observed that the petitioner had placed on record all necessary documents to

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has

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**Application:** The court applied this ratio to the facts by verifying that Glister Hospitality

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Respondents:** Glister Hospitalit…

## Timeline

- **2014-07-15 — Incorpor…**: The Corporate Debtor, Glister Hospitality…
- **2014-07-23 — Lease Deed Ex…**: The Corporate Debtor executed a lease deed with Endure Reality Pvt. Ltd. for an area of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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