# In the matter of Leo Duct Engineers & Consultants Limited CP. No. 1103-I&BC-NCLT-MB-2017

> NCLT judgment dated 2018-03-21. Citation: TCN-2018-NCLT-01662. The case pertains to a company petition filed by Leo Duct Engineers & Consultants Limited under…

- **Court:** NCLT
- **Order date:** 21 Mar 2018
- **Citation:** TCN-2018-NCLT-01662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/leo-duct-engineers-consultants-limited-cp-no-1103-ibc-nclt-mb-2017-10a47a40

## Summary

### Background

The case pertains to a company petition filed by Leo Duct Engineers & Consultants Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's registered office is located in Mumbai, Maharashtra. The Board of Directors authorized the filing of the application. The applicant company submitted Form - 6 to initiate CIRP proceedings.

## Facts

Leo Duct Engineers & Consultants Limited filed a company petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor's registered office is situated in Mumbai. The Board of Directors authorized the filing of the application. The total debt raised from Canara Bank is ₹48,39,48,000/- with a default of ₹26,43,38,748/-, and from Standard Chartered Bank is ₹5,00,00,000/- with a default of ₹5,46,75,210/-. The total outstanding debt is ₹74,82,86,748/-. The company incurred losses of ₹4.5 crore and ₹2.35 crores for the financial years ending 31.3.2016 and 31.3.2017, respectively. The Corporate Debtor submitted details of personal properties of Promoters mortgaged against the debt

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor has committed default under Section 10 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority, upon reviewing the petition and supporting documents, found

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** The Corporate Debtor's inability to pay its debts to Canara Bank and Standard

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Respondents:** Leo Duct Engineers…

## Timeline

- **2017-05-23 — Board Reso…**: The Board of Directors of the Corporate Debtor authorized Mr. Daiyen Ahmed Azmi to file…
- **2017-06-07 — Form 6 Subm…**: The Applicant Company submitted Form…

## 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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