# In the matter of Royaloak Furniture India LLP C.P. (IB) No. 36-BB-2021

> NCLT judgment dated 2021-04-08. Citation: TCN-2021-NCLT-02435. Royaloak Furniture India LLP filed an application under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Apr 2021
- **Citation:** TCN-2021-NCLT-02435
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royaloak-furniture-india-llp-cp-ib-no-36-bb-2021-5b9dd455

## Summary

### Background

Royaloak Furniture India LLP filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company stated that it could not revive its business due to financial stress and the impact of lockdown imposed by the Government from March 2020. The company has defaulted on payments to its operational and financial creditors since December 2019. The Board of Directors convened a meeting on 31.08.2020 and resolved to make an application under Section 10 of the IBC, 2016.

## Facts

Royaloak Furniture India LLP, a Limited Liability Partnership Firm incorporated on 30.03.2010, filed an application under Section 10 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company's registered office is located in Bengaluru. The company is in the business of dealing in all kinds of furniture, fittings, timber, wooden products, plywood, and teak wood. The company stated that it could not revive its business due to financial stress and the impact of lockdown imposed by the Government from March 2020. The company has defaulted on payments to its operational and financial creditors since December 2019, with a total default amount of Rs.3,35,52,636/-. The company's financial statements show losses for the years ending

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## Issues and analysis

### Issue 1: Whether the application filed by Royaloak Furniture India LLP under Section 10 of the IBC, 2016, …

**Ratio:** Section 10(4) of the Insolvency and Bankruptcy Code, 2016 states that the Adjudicating

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**Reasoning:** The Adjudicating Authority noted that the Petitioner LLP has himself admitted its adverse

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**Interpretation:** Section 10 of the IBC allows a corporate applicant to initiate CIRP if it has

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**Application:** In this case, the Adjudicating Authority found that Royaloak Furniture India

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** ROYALOAK FURNITURE…; Union of…
- **Advocates:** Vignesh S…; Natasha N.…; +1 more

## Timeline

- **2010-03-30 — Incorporation of…**: Royaloak Furniture India LLP was incorporated…
- **2019-12-01 — Default on P…**: Royaloak Furniture India LLP defaulted on payments to its operational and financial…

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