# In the matter of Kunal Industries Private Limited C.P.(IB) -413-(MB)-2018

> NCLT judgment dated 2018-12-17. Citation: TCN-2018-NCLT-00061. Kunal Industries Private Limited filed a Company Petition under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 17 Dec 2018
- **Citation:** TCN-2018-NCLT-00061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kunal-industries-private-limited-cpib-413-mb-2018-7006d9a7

## Summary

### Background

Kunal Industries Private Limited filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process. The Corporate Applicant's registered office is located in Pune. The shareholders passed a Special Resolution in an Extra Ordinary General Meeting held on 28.02.2018 to file the application. The Corporate Applicant disclosed outstanding dues of Rs. 2,63,00,000/- to financial creditors, with Rs. 67,47,446/- in default, and Rs. 58,47,661/- due to unsecured financial creditors, also in default. Additionally, Rs. 1,07,73,314/- is due to operational creditors and is in default.

## Facts

Kunal Industries Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The company's registered office is in Pune. A Special Resolution was passed on 2018-02-28 to authorize the filing of the application. The company disclosed that it owes Rs. 2,63,00,000 to financial creditors, with Rs. 67,47,446 in default. It also owes Rs. 58,47,661 to unsecured financial creditors, which is also in default. Furthermore, Rs. 1,07,73,314 is owed to operational creditors and is in default. The company enclosed sanction letters from financial creditors and demand notices. An arbitral award dated 2016-01-21 was passed against the company for Rs. 14,35,978 with interest. The

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant, Kunal Industries Private Limited, has committed a default under …

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

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**Reasoning:** The Bench considered the disclosed outstanding dues to financial and operational

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**Interpretation:** The interpretation of Section 10 focuses on the existence of a default, which

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**Application:** The Corporate Applicant disclosed defaults in payments to financial and

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Kunal Industries…

## Timeline

- **2007-01-29 — Incorporati…**: Kunal Industries Private…
- **2016-01-21 — Arbitral…**: An arbitral award was passed against the Corporate Applicant by the Sole Arbitrator Ms.…

## 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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