# In the matter of Fateh Leasing and Finance Private Limited

> NCLT judgment dated 2024-01-08. Citation: TCN-2024-NCLT-03261. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 8 Jan 2024
- **Citation:** TCN-2024-NCLT-03261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fateh-leasing-and-finance-private-limited-a63b6e7c

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 by Fateh Leasing and Finance Private Limited, the Corporate Applicant, for initiation of the Corporate Insolvency Resolution Process (CIRP). The application was filed due to defaults in financial obligations to its Financial Creditors and Operational Creditors. The Corporate Applicant is a Private Limited company with CIN: U65921TN1995PTC104933, and its registered office is located in Chennai. The application details the total amount of default with respect to Financial Creditors as Rs.912,36,41,347.14/- and with respect to Operational Creditors as Rs.96,350/-. The Corporate Applicant had initially proposed Mr. S.S.Ravichandran as the IRP, but he withdrew his consent,

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## Facts

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) due to defaults in financial obligations. The company's registered office is in Chennai. The total default amount to Financial Creditors is Rs.912,36,41,347.14/-, and to Operational Creditors is Rs.96,350/-. The company initially proposed Mr. S.S.Ravichandran and then Mr. Gopinath as IRP, but both withdrew their consent. The company provided a Board resolution and a Special Resolution, both dated 26.04.2023, for initiating CIRP. The Tribunal directed the applicant to serve notice to creditors, which was complied with. The Tribunal observed that the Corporate Debtor defaulted in

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## Issues and analysis

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

**Ratio:** Section 10 of the Insolvency and 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 insolvency

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**Application:** The Tribunal applied Section 10 to the facts presented, noting the significant

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## Parties

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

## Timeline

- **2023-04-26 — Board Reso…**: Board resolution passed for initiating Corporate Insolvency Resolution process under…
- **2023-04-26 — Special Res…**: Special Resolution passed for approval of members/shareholders to initiate the CIRP…

## 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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