# In the matter of Orbit Financial Consultants Private Limited

> NCLT judgment dated 19 Jul 2023. Citation: TCN-2023-NCLT-02451. The Corporate Applicant, Orbit Financial Consultants Private Limited, filed a petition under…

- **Court:** NCLT
- **Order date:** 19 Jul 2023
- **Citation:** TCN-2023-NCLT-02451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orbit-financial-consultants-private-limited-18fcbeb7

## Summary

### Background

The Corporate Applicant, Orbit Financial Consultants Private Limited, filed a petition under section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against itself due to financial distress, including negative net worth, continued cash losses, and inability to meet financial obligations.

## Facts

Orbit Financial Consultants Private Limited, the Corporate Applicant, filed a petition 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. The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The application was filed through its Director, Mr. Pratush Drolia, who was duly authorized by a Board Resolution dated June 29, 2021.

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant has fulfilled all the requirements under section 10 of the…

**Ratio:** A corporate applicant seeking to initiate CIRP against itself must demonstrate that a…

**Reasoning:** The Adjudicating Authority examined the documents submitted by the Corporate Applicant,…

**Interpretation:** The court interpreted **section 10** of the IBC as requiring the corporate…

**Application:** The Corporate Applicant provided audited balance sheets showing negative net…

## Parties

- **Judges:** Rohit K…; RAHUL BHA…
- **Advocates:** For Petit…; Aparajita Rao,…; +1 more

## Timeline

- **June 29, 2021 — Board Reso…**: Board Resolution passed authorizing Mr.…
- **November 30, 2021 — Annual General…**: Special resolution passed by…

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