# In the matter of FDS Management Services Private Limited CP (IB) - 1085 ((PB)-2020

> NCLT judgment dated 2023-01-09. Citation: TCN-2023-NCLT-05136. FDS Management Services Private Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Jan 2023
- **Citation:** TCN-2023-NCLT-05136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fds-management-services-private-limited-cp-ib-1085-pb-2020-c70be201

## Summary

### Background

FDS Management Services 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 application was filed through its Director, Mr. Surinder Routela, authorized by a Board Resolution dated April 28, 2020. The Corporate Applicant, incorporated on January 5, 2007, was engaged in providing various services, including pest control, canteen, and manpower supply. The company faced financial difficulties, leading to defaults in financial and operational debt payments.

## Facts

FDS Management Services Private Limited (CIN:U74140DL2007PTC157502) filed a petition on 2020-10-22 under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against itself. The application was filed through its Director, Mr. Surinder Routela (DIN: 03153135), authorized by a Board Resolution dated 2020-04-28. The Corporate Applicant was incorporated on 2007-01-05 and engaged in providing pest control, canteen, and guest house maintenance services. As of 2020-02-01, the total financial and operational debt outstanding was Rs. 5,00,000/- and Rs. 3,91,69,507/-, respectively. The Corporate Applicant's financial performance had declined since 2016-17, incurring losses of Rs. 4,54,96,642/- in 2019-20. Despite

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## Issues and analysis

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

**Ratio:** The ratio is based on the judgment of Hon'ble NCLAT in M/s Unigreen Global Pvt Ltd. Vs.

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**Reasoning:** The court reasoned that the Corporate Applicant had proved that it was in default and had

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP against itself

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Dyuti…
- **Respondents:** FDS MANAGEMENT…; Adv.Samiksha…

## Timeline

- **2007-01-05 — Incorporation of…**: FDS Management Services…
- **2020-04-28 — Board Reso…**: Board Resolution authorizing Mr.…

## Legal provisions

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

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