# In the matter of Amrit India Ltd. CP (IBPP) No. 03 (PB)-2022

> NCLT judgment dated 2022-11-28. Citation: TCN-2022-NCLT-00314. The application is filed under Section 54C of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 28 Nov 2022
- **Citation:** TCN-2022-NCLT-00314
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amrit-india-ltd-cp-ibpp-no-03-pb-2022-a70572da

## Summary

### Background

The application is filed under Section 54C of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Pre-Packaged Insolvency Resolution Process) Rules, 2021, seeking initiation of Pre-Packed Insolvency Resolution Process (PPIRP) under Chapter III-A of the Code with respect to Amrit India Ltd. The Corporate Debtor is a company limited by shares, incorporated on 29.12.1981, engaged in trading & consultancy. The Corporate Debtor is under a default of financial debt to the tune of INR 12,25,000/- owed to Awadh Sharan Singh. The Corporate Debtor had sanctioned a loan facility for INR 10,00,000 on 25.03.2021.

## Facts

Amrit India Ltd. filed an application under Section 54C of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a Pre-Packaged Insolvency Resolution Process (PPIRP). The company, incorporated on 29.12.1981 and engaged in trading and consultancy, is registered as an MSME. It defaulted on a financial debt of INR 12,25,000 owed to Awadh Sharan Singh. A loan facility of INR 10,00,000 was sanctioned on 25.03.2021. The application was supported by a special resolution passed on 15.06.2022, approval from the non-related Financial Creditor, and consent from the appointed Insolvency Professional, Mr. Mukesh Kumar Jain. The company also declared the non-existence of avoidance transactions and confirmed eligibility under Section 29A of the Code. The application included

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## Issues and analysis

### Issue 1: Whether the application for initiation of Pre-Packaged Insolvency Resolution Process (PPIRP) under …

**Ratio:** Section 54C of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for

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**Reasoning:** The court perused the proceedings and found that the Corporate Debtor had produced all

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**Interpretation:** Section 54C mandates that the application must be complete and compliant with

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**Application:** The court applied the ratio by verifying that Amrit India Ltd. had submitted

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## Parties

- **Judges:** Ramalingam…; SH. AVINASH KUMAR…
- **Respondents:** Amrit Indi…

## Timeline

- **1981-12-29 — Incorporation of…**: Amrit India Ltd. was incorporated…
- **2021-03-25 — Loan Facility S…**: A loan facility of INR 10,00,000 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54C — Application to initiate pre-packaged insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54c)

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