# In the matter of Dearborn Barter Private Limited

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-02420. Dearborn Barter Private Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-02420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dearborn-barter-private-limited-10f53c39

## Summary

### Background

Dearborn Barter Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company, registered as a Non-Banking Financial Company (NBFC) under section 45-1A of the Reserve Bank of India Act, 1934, is primarily engaged in providing loans and investing in securities. The application was filed due to defaults in payments to the Income Tax Department and debt owed to Amit Hemraj Jain & Associates.

## Facts

Dearborn Barter Private Limited (CIN: U51900WB1994PTC066911), a company incorporated on December 28, 1994, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company's registered office is located in Kolkata. The application was supported by a Board Resolution dated August 28, 2021, and a resolution passed in the Annual General Meeting held on November 29, 2021. The company owes Rs. 2,90,79,028/- to Operational Creditors. The company defaulted in payments to the Income Tax Department, which raised Income Tax Demand for the Assessment Years 2011-2012, 2012-2013, and 2013-2014. It also has debt owed to Amit Hemraj Jain & Associates for the Financial

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## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP by a Financial Service Provider against itself is …

**Ratio:** Financial Service Providers are generally kept outside the purview of the Code, as

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**Reasoning:** The court relied on the precedent set by the NCLAT in Radhiraj Thakur v. Jindal Saxena

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, generally excludes Financial Service

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**Application:** In this case, the Corporate Applicant, being a Financial Service Provider,

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Dearborn Barter…
- **Advocates:** Aparajit…; Ankana…

## Timeline

- **1994-12-28 — Incorpor…**: Dearborn Barter Private…
- **2018-12-24 — Income Tax…**: Income Tax Department raised Income Tax…

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