# Gugani Leasing & Hire Purchase Private Limited

> NCLT judgment dated 2025-06-27. Citation: TCN-2025-NCLT-00747. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Jun 2025
- **Citation:** TCN-2025-NCLT-00747
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gugani-leasing-hire-purchase-private-limited-a18fa860

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Gugani Leasing & Hire Purchase Private Limited, the Corporate Applicant, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was filed due to the Corporate Applicant's default in meeting its financial obligations to its Financial Creditors and Operational Creditors. The Corporate Applicant is a private limited company incorporated on June 6, 1997, and its primary business involves finance, hire purchase, leasing, and finance lease operations. The application was filed after the Corporate Applicant defaulted on payments to financial creditors amounting to Rs. 9,123,641,347.14 and operational creditors amounting to Rs. 92,06,350.

## Facts

Gugani Leasing & Hire Purchase Private Limited (Corporate Applicant) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) due to its inability to meet financial obligations. The Corporate Applicant, incorporated on June 6, 1997, is engaged in finance, hire purchase, and leasing. The total default amount to Financial Creditors is Rs. 9,123,641,347.14, and to Operational Creditors is Rs. 92,06,350. The Corporate Applicant had proposed Mr. S.S. Ravichandran as IRP, but he withdrew his consent, followed by Mr. Gopinath and Mr. S. Kangayan. Eventually, Mr. G. Ramachandran gave his consent. The Corporate Applicant provided a corporate guarantee to SBQ Steels Limited, leading to

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority considered the documents submitted by the Corporate Applicant,

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**Interpretation:** Section 10 of the IBC provides the mechanism for a corporate debtor to initiate

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**Application:** The Adjudicating Authority found that the Corporate Applicant had demonstrated

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Respondents:** Gugani Leasing &…

## Timeline

- **1997-06-06 — Incorporation of…**: Gugani Leasing & Hire Purchase…
- **2023-04-26 — Board Reso…**: The Board of Directors of the Corporate Debtor passed a resolution approving the…

## 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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