# In the matter of Nysa Enterprises Pvt. Ltd. C.P. (IB) No.02-BB-2017

> NCLT judgment dated 2019-07-08. Citation: TCN-2019-NCLT-02631. M/s. Nysa Enterprises Pvt. Ltd. filed C.P. (IB) No.02/BB/2017 under Section 10 of the IBC,…

- **Court:** NCLT
- **Order date:** 8 Jul 2019
- **Citation:** TCN-2019-NCLT-02631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nysa-enterprises-pvt-ltd-cp-ib-no02-bb-2017-0f2b90c8

## Summary

### Background

M/s. Nysa Enterprises Pvt. Ltd. filed C.P. (IB) No.02/BB/2017 under Section 10 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company claimed it defaulted on a total outstanding amount of Rs.56,55,587.21 out of a total debt of Rs.60,00,000. The company's inability to continue its business due to the termination of a franchise agreement with V.F. Brands India Private Limited, leading to the closure of its store, was cited as the reason for its financial distress. The company had taken loans from ICICI Bank, Zen Lefin Pvt. Ltd., and HDFC Bank Ltd. One of the financial creditors, Zen Lefin Pvt. Ltd., objected, stating that the company had the financial capability to repay its debt. HDFC Bank also contested the application,

…

## Facts

M/s. Nysa Enterprises Pvt. Ltd., a private limited company incorporated on 05.09.2005, filed an application under Section 10 of the IBC, 2016, to initiate CIRP. The company's registered office is located at No.126, Wrangler Showroom, 1st Floor, The Forum Mall, No.21, Hosur Road, Koramangala, Bangalore-560029. The company's authorized share capital is Rs.20,00,000, and its paid-up share capital is Rs.10,00,000. The company's main objects include carrying on business as dealers, distributors, processors, inventors, makers, packers, movers, stockists, agents, sub-agents, merchants, consignors, and brokers of garments, fabrics, textile, and cloth. The company had a franchise outlet of V.F. Brands India Private Limited for 'Wrangler Jeans' at Forum Mall. The franchise

…

## Issues and analysis

### Issue 1: Whether the Corporate Applicant is commercially insolvent so as to initiate CIRP under Section 10 …

**Ratio:** The basic contention that the Applicant/Petitioner is not commercially solvent to pay its

…

**Reasoning:** The NCLT considered the fact that the Corporate Applicant admitted to owning an immovable

…

**Interpretation:** The NCLT interpreted Section 10 of the IBC to mean that a company must be

…

**Application:** The NCLT applied the ratio to the facts of the case, finding that the Corporate

…

## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Rosemary Anthony…
- **Respondents:** Nysa Enterprises…; ICICI Bank…

## Timeline

- **2005-09-05 — Company Incor…**: M/s. Nysa Enterprises Private Limited…
- **2016-10-27 — Letter to Res…**: Corporate Debtor issued a letter to all the Respondents stating the company owns a land…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/nysa-enterprises-pvt-ltd-cp-ib-no02-bb-2017-0f2b90c8