# Growell Hire Purchase & Finance Private Limited

> NCLT judgment dated 2025-06-27. Citation: TCN-2025-NCLT-00748. Growell Hire Purchase & Finance Private Limited filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 27 Jun 2025
- **Citation:** TCN-2025-NCLT-00748
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/growell-hire-purchase-finance-private-limited-5745541e

## Summary

### Background

Growell Hire Purchase & Finance Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate 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 was incorporated on 02.06.1987 and was involved in hire purchase, general finance, and investment. The company's primary asset is investments in SBQ Steels Limited and other companies. SBQ Steels Limited, the principal borrower, underwent CIRP and was dissolved under Section 54 of IBC, 2016.

## Facts

Growell Hire Purchase & Finance Private Limited (Corporate Applicant) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) due to defaults in financial obligations. The Corporate Applicant was incorporated on 02.06.1987 and was involved in hire purchase, general finance, and investment. The total amount of default to Financial Creditors is Rs. 912,36,41,347.14 and to Operational Creditors is Rs. 6,13,621. The Corporate Applicant provided a corporate guarantee to SBQ Steels Limited, which underwent CIRP and was dissolved. The Corporate Applicant submitted its statement of affairs as of 30.04.2023. The Board resolution approving the initiation of CIRP was passed on 26.04.2023.

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## Issues and analysis

### Issue 1: Whether the Corporate Applicant, Growell Hire Purchase & Finance Private Limited, has committed …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The Adjudicating Authority considered the documents submitted, including financial

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**Interpretation:** Section 10 of the IBC is interpreted to mean that if a corporate debtor is

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**Application:** The Adjudicating Authority applied the ratio to the facts of the case and

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Respondents:** Growell Hire…

## Timeline

- **1987-06-02 — Incorporation of…**: Growell Hire Purchase & Finance…
- **2023-04-26 — Board Reso…**: Board resolution of the Corporate Debtor was passed approving for initiating Corporate…

## 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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