# In the matter of Indus Business Systems Limited CP (IB) No.363-10-HDB-2022

> NCLT judgment dated 2023-03-23. Citation: TCN-2023-NCLT-04081. The case pertains to a Company Petition (IB) No. 363/10/HDB/2022 filed under Section 10 of the…

- **Court:** NCLT
- **Order date:** 23 Mar 2023
- **Citation:** TCN-2023-NCLT-04081
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indus-business-systems-limited-cp-ib-no363-10-hdb-2022-5b80e695

## Summary

### Background

The case pertains to a Company Petition (IB) No. 363/10/HDB/2022 filed under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7 of the I&B (AAA) Rules, 2016. The petition was filed by M/s. Indus Business Systems Limited, the Corporate Applicant, to initiate the corporate insolvency resolution process (CIRP). The Corporate Applicant stated that it is a limited company involved in the development of packaged software but has faced business challenges, including a lack of sales in the last 7 months due to a lack of funds. One of its major operational creditors, Sirus Business Solutions Private Limited, stopped purchasing software due to its own financial difficulties and began demanding a refund of trade advance. The members of the Company

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## Facts

M/s. Indus Business Systems Limited, a company involved in the development of packaged software, filed a petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). The company claimed it faced financial difficulties, including a lack of sales in the last 7 months due to a lack of funds. The company's major operational creditor, Sirus Business Solutions Private Limited, stopped purchasing software and demanded a refund of trade advance, with an outstanding amount of Rs.1,88,54,304/-. The company also defaulted to a service contractor to an extent of Rs.19,80,000/-. As of 31.10.2022, the company had cash and cash equivalents of Rs.7,47,092/-, fixed assets of Rs. 12,08,629/-, and an

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## Issues and analysis

### Issue 1: Whether the petition filed by M/s. Indus Business Systems Limited under Section 10 of the …

**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 averments made in the petition, including the

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

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**Application:** The Adjudicating Authority applied Section 10 of the IBC to the facts of the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Respondents:** M/s. Indus…

## Timeline

- **2022-10-26 — Extra Ordinary General…**: Members of M/s. Indus Business Systems Limited passed a resolution for initiating the…
- **2023-03-23 — Order Da…**: The Adjudicating Authority admitted the petition under Section 10 of the IBC, declared a…

## 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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