# In the matter of Virgo marine Shipyards Private Limited C.P. (IB) -1600-(MB)-2019

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02232. Virgo Marine Shipyards Private Limited filed a Company Petition under Section 10 of the…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/virgo-marine-shipyards-private-limited-cp-ib-1600-mb-2019-96421de5

## Summary

### Background

Virgo Marine Shipyards Private Limited filed a Company 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, for initiating the Corporate Insolvency Resolution Process. The company was incorporated on 17.09.2010 and authorized Mr. Mohanlal Pillai to file the application under the Code.

## Facts

Virgo Marine Shipyards Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process. The company's registered office is in Mumbai, and it was incorporated on 17.09.2010. An Extra Ordinary General Meeting held on 15.02.2019, a special resolution was passed to initiate the CIRP. The Board of Directors authorized Mr. Mohanlal Pillai to file the application. The company's total outstanding debt is Rs. 33,84,76,823.61/-, with Rs. 27,43,24,609.09/- owed to financial creditors and Rs. 6,41,52,214.52/- owed to operational creditors, including statutory dues. The company submitted demand notices from financial creditors and financial statements for the years 2016-17 and 2017-18,

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant has committed a default in repayment of its debts as per Section 10 …

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

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**Reasoning:** The court considered the documents annexed with the petition, including demand notices

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** The court found that the Corporate Applicant had indeed defaulted in repayment

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Virgo Marine…

## Timeline

- **2010-09-17 — Company Incor…**: Virgo Marine Shipyards…
- **2018-02-15 — Board Me…**: The Board of Directors authorized Mr. Mohanlal Pillai to file the application under the…

## 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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