# In the matter of Profisor Services Private Limited (IB)-1932 (ND)-2019

> NCLT judgment dated 2021-11-29. Citation: TCN-2021-NCLT-00375. The case involves an application under Section 10 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 29 Nov 2021
- **Citation:** TCN-2021-NCLT-00375
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/profisor-services-private-limited-ib-1932-nd-2019-b1f65d7f

## Summary

### Background

The case involves an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by Profisor Services Private Limited, the Corporate Applicant/Corporate Debtor, to initiate a Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's financial distress and inability to pay its debts. Employees of the Corporate Applicant contended that the Section 10 application was filed with malafide intention and that the Corporate Applicant had misrepresented the true facts and suppressed the true quantum of operational debt due to them. The Corporate Applicant was incorporated on 08.12.2015.

## Facts

Profisor Services Private Limited filed an application under Section 10 of the IBC, 2016, seeking to initiate CIRP. The company was incorporated on 08.12.2015. The authorized share capital is Rs. 10,00,000/- and issued share capital is Rs. 1,00,000/-. The company claimed it had no financial creditors but had incurred operational debt since January 2019 due to delayed employee salaries. Employees contested the application, alleging it was filed with malafide intention and that the company misrepresented the operational debt. They also alleged that Rahul Arora may have siphoned funds to other companies. The employees also contended that the Corporate Applicant has blatantly suppressed the true quantum of operational debt due and payable to the employees, violating

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the IBC, 2016, is …

**Ratio:** Section 10 of the IBC, 2016, read with Rule 7 of the Insolvency and Bankruptcy

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**Reasoning:** The Adjudicating Authority considered the application and the documents filed by the

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**Interpretation:** The completeness of the application is a prerequisite for its admission. The

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; AVINASH K.…
- **Respondents:** Profisor Services…

## Timeline

- **2015-12-08 — Incorporation of…**: Profisor Services Private…
- **2019-01-01 — Incurrence of…**: The Corporate Applicant incurred operational…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 77 — Punishment for providing false information in…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-77)

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