# In the matter of Suasth Health Care Foundation C.P. (I.B) No. 204-KB-2021

> NCLT judgment dated 2021-08-31. Citation: TCN-2021-NCLT-01246. Suasth Health Care Foundation filed an application under Section 10 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 31 Aug 2021
- **Citation:** TCN-2021-NCLT-01246
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suasth-health-care-foundation-cp-ib-no-204-kb-2021-d9dca6ee

## Summary

### Background

Suasth Health Care Foundation filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The Corporate Debtor, incorporated on 01/12/2008, operates a healthcare facility in Mumbai, Maharashtra. It faced financial difficulties, leading to defaults in payments to financial and operational creditors. The application was supported by a special resolution passed by the shareholders on July 23, 2021, authorizing the initiation of CIRP.

## Facts

Suasth Health Care Foundation, a company incorporated on 01/12/2008, operating a healthcare facility, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against itself. The company defaulted on payments to its financial and operational creditors. The total debt exposure to financial creditors was Rs. 611,42,35,816/-, and the amount in default was Rs. 62,53,76,308/- as of July 15, 2021. The company raised funds from Yes Bank Limited, Axis Bank Limited, SREI Equipment Finance Limited, and Hari Vitthal Mission. Yes Bank Limited issued a statutory notice under section 13(2) of the SARFAESI Act, 2002, due to defaults exceeding Rs. 1,00,00,000/-. The company also defaulted on

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the Insolvency & …

**Ratio:** Section 10 of the Insolvency & Bankruptcy Code, 2016, allows a corporate debtor to

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**Reasoning:** The Corporate Debtor has defaulted on payments to its financial and operational

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The Corporate Debtor's application is admitted because it has defaulted on

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## Parties

- **Judges:** Rajasekh…; Harish Chander…
- **Respondents:** Suasth Health…

## Timeline

- **2008-12-01 — Incorporation of…**: Suasth Health Care…
- **2021-07-15 — Default…**: The Corporate Debtor was in default of Rs. 62,53,76,308/- to financial creditors as of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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