# In the matter of Fateh Leasing and Finance Private Limited

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03253. Fateh Leasing and Finance Private Limited filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fateh-leasing-and-finance-private-limited-68a1e7c3

## Summary

### Background

Fateh Leasing and Finance Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's inability to meet its financial obligations to its Financial and Operational Creditors. The Corporate Applicant had proposed Mr. S.S.Ravichandran as the IRP, but he withdrew his consent, and subsequently, Mr. Gopinath was proposed, who also withdrew his consent.

## Facts

Fateh Leasing and Finance Private Limited, represented by its Director, Mr. Ritesh Rai, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The company's CIN is U65921TN1995PTC104933, and its registered office is located in Chennai. The company defaulted on financial obligations to its Financial Creditors and Operational Creditors. The total amount of default to Financial Creditors was Rs. 912,36,41,347.14, and to Operational Creditors was Rs. 96,350. The company submitted various documents, including notices under SARFAESI Act, applications under RDBFI Act, and financial statements, to prove the existence of the debt. The company passed a Board resolution and a Special

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency & Bankruptcy Code, 2016, for …

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

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**Reasoning:** The Tribunal observed that the Corporate Debtor had committed a default in repayment of

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The Tribunal found that Fateh Leasing and Finance Private Limited had committed

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Fateh Leasing and…

## Timeline

- **2023-04-26 — Board Reso…**: The Applicant Company placed on record the Board resolution for initiating Corporate…
- **2023-04-26 — Special Res…**: The Corporate Applicant filed a Special Resolution for approval of members / shareholders…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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