# In the matter of Mycozoom Biotech India Pvt. Ltd.

> NCLT judgment dated 5 Feb 2024. Citation: TCN-2024-NCLT-02764. Mycozoom Biotech India Pvt. Ltd., the Corporate Applicant, filed an application under Section…

- **Court:** NCLT
- **Order date:** 5 Feb 2024
- **Citation:** TCN-2024-NCLT-02764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mycozoom-biotech-india-pvt-ltd-ca00ad9b

## Summary

### Background

Mycozoom Biotech India Pvt. Ltd., the Corporate Applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The Corporate Applicant admitted to defaulting on payments totaling Rs. 1,45,20,537/- to various operational creditors, employees, and for taxes and duties. This application was supported by a special resolution passed by its Board of Directors and in its Annual General Meeting, indicating a voluntary decision to undergo CIRP due to severe financial distress and liquidity crisis.

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## Facts

Mycozoom Biotech India Pvt. Ltd., the Corporate Applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The Corporate Applicant admitted to a default in payment of Rs. 1,45,20,537/- to various operational creditors, employees, and for taxes and duties. This amount includes Rs. 83,35,720/- for operational creditors, Rs. 44,30,737/- for employees' salaries and reimbursements, Rs. 15,22,880/- for advances received from customers, and Rs. 2,31,200/- for TDS payable.

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant has…

**Ratio:** A corporate applicant's explicit admission of default in payment of a specified amount to…

**Reasoning:** The Corporate Applicant, Mycozoom Biotech India Pvt. Ltd., explicitly stated in its…

**Interpretation:** The court interpreted 'default' as defined under the IBC to include the failure…

**Application:** Given the Corporate Applicant's admission of default totaling Rs. 1,45,20,537/-…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. ATUL CHATURVED…
- **Advocates:** For the Applicant:…

## Timeline

- **March 8, 2009 — Incorporation of…**: Mycozoom Biotech India Pvt. Ltd. was…
- **August 1, 2019 — Leave and License…**: The Corporate Debtor entered into an agreement with Mrs. Seema Garg for storage of…

## 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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