# In the matter of Y.Pani and Company Pvt. Ltd. CP (IB) No. 8-CTB-2021

> NCLT judgment dated 2021-09-13. Citation: TCN-2021-NCLT-01136. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Sept 2021
- **Citation:** TCN-2021-NCLT-01136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ypani-and-company-pvt-ltd-cp-ib-no-8-ctb-2021-d42af565

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Y. Pani and Company Pvt. Ltd. to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The company, incorporated in 1956, has its registered office in Bhubaneswar, Odisha. The company states that it is unable to pay its debt of ₹7,97,73,547. The company's primary business is lodging, boarding, and restaurant services, operating a hotel named 'Raaz'. The Orissa State Financial Corporation had taken possession of the hotel asset due to unpaid dues.

## Facts

Y. Pani and Company Pvt. Ltd., incorporated in 1956, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against itself. The company's registered office is in Bhubaneswar, Odisha. The company's primary business is lodging, boarding, and restaurant services, operating a hotel named 'Raaz'. The company claims it is unable to pay a debt of ₹7,97,73,547. The hotel asset was previously taken into possession by the Orissa State Financial Corporation. The applicant was incorporated on 15.01.1990. The Orissa State Financial Corporation informed the applicant to sell the unit to the petitioner for ₹36,00,000/- which inclusive of total loan amount ₹90,164.27/- with interest @ 12.5% per annum for purchase of hotel and for

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## Issues and analysis

### Issue 1: Whether the application filed by Y. Pani and Company Pvt. Ltd. under Section 10 of the Insolvency …

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

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**Reasoning:** The court considered the applicant's submission that it is unable to pay its debt of

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**Interpretation:** Section 10 provides a mechanism for a corporate entity facing financial

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**Application:** The applicant, Y. Pani and Company Pvt. Ltd., demonstrated its inability to pay

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## Parties

- **Judges:** Rajasekha…; Satya Ranjan…
- **Respondents:** Y. Pani and…

## Timeline

- **1956-01-01 — Company Incor…**: Y. Pani and Company Pvt. Ltd. was…
- **1990-01-15 — Applicant Inco…**: The applicant was incorporated…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/ypani-and-company-pvt-ltd-cp-ib-no-8-ctb-2021-d42af565