# In the matter of Kaula Agro Foods Pvt. Ltd. IBA-44-KOB-2019

> NCLT judgment dated 2019-12-03. Citation: TCN-2019-NCLT-00342. The case involves an application filed by Muhamed Sameer, the Corporate Applicant, under…

- **Court:** NCLT
- **Order date:** 3 Dec 2019
- **Citation:** TCN-2019-NCLT-00342
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kaula-agro-foods-pvt-ltd-iba-44-kob-2019-a44b1cda

## Summary

### Background

The case involves an application filed by Muhamed Sameer, the Corporate Applicant, under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Kaula Agro Foods Private Limited, the Corporate Debtor. The Corporate Debtor's financial condition has deteriorated, leading to a debt trap, and the application aims to ensure the maximum value of assets for all stakeholders. The Corporate Debtor was incorporated on 18.02.2008 and its registered office is located in Kerala.

## Facts

Muhamed Sameer, as the Corporate Applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kaula Agro Foods Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on February 18, 2008, with its registered office in Kerala. The application was authorized by a special resolution dated October 9, 2019. The authorized share capital of the company is ₹5,00,00,000, divided into 50,00,000 equity shares of ₹10 each, and the paid-up capital is ₹4,50,00,000. The Corporate Debtor's main business involves manufacturing, trading, and processing food items. The Corporate Applicant claimed a financial debt of ₹4,71,79,934.44 and an operational debt of

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## Issues and analysis

### Issue 1: Whether the application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate applicant to

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**Reasoning:** The Corporate Debtor's financial statements and submissions indicate that it is unable to

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The Corporate Debtor's inability to meet its financial obligations, as

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## Parties

- **Judges:** Ashok Kumar…; Veera Brahma Rao…
- **Appellants:** MUHAMED S…
- **Respondents:** KAULA AGRO FOODS…

## Timeline

- **2008-02-18 — Incorporation of…**: Kaula Agro Foods Private…
- **2019-10-09 — Special Res…**: Special Resolution passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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