# In the matter of Advance Recycling Solutions LLP

> NCLT judgment dated 2024-11-19. Citation: TCN-2024-NCLT-00207. M/s. Advance Recycling Solutions LLP filed an application under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 19 Nov 2024
- **Citation:** TCN-2024-NCLT-00207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-recycling-solutions-llp-82ebcf3a

## Summary

### Background

M/s. Advance Recycling Solutions LLP filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The company, incorporated on 05.07.2018, faced financial difficulties due to accumulated operational and financial debt. The application was filed due to the company's inability to sustain its business operations and resolve its debts, aiming to revive itself into a sustainable enterprise. The Corporate Applicant passed a special resolution on 02.04.2024 to pursue the resolution process under Section 10 of the IBC.

## Facts

M/s. Advance Recycling Solutions LLP, incorporated on 05.07.2018, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company's registered office is in Delhi. The company comprises two designated partners, Mr. Rohit Gidwani and Mrs. Pooja Sharma, each holding a 50% shareholding. The company's business activities include manufacturing and trading machinery and equipment. The company faced financial difficulties, resulting in a net loss of Rs. 5,38,41,037/- for the fiscal year ending on 31.03.2024. The total outstanding debt of the Corporate Debtor amounts to Rs. 4,72,20,344/-. The Corporate Applicant passed a special resolution on 02.04.2024 to pursue the resolution

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has jurisdiction to adjudicate upon the application filed by a …

**Ratio:** Section 10 of the IBC allows for an application to be initiated by a "corporate

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**Reasoning:** The Adjudicating Authority relied on the definition of "corporate applicant"

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**Interpretation:** The term "corporate applicant" under Section 3(7) of the IBC is

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**Application:** Since M/s. Advance Recycling Solutions LLP is a Limited Liability Partnership,

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Respondents:** M/s. ADVANCE…

## Timeline

- **2018-07-05 — Incorporation of…**: M/s. Advance Recycling Solutions LLP was…
- **2024-04-02 — Special Res…**: The Corporate Applicant passed a special resolution to pursue the resolution process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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