# In the matter of Infiniti Techlabs LLP C.P. (IB) No. 112-10-HDB-2021

> NCLT judgment dated 2023-03-10. Citation: TCN-2023-NCLT-04277. The Corporate Applicant, M/s. Infiniti Techlabs LLP, filed an application under Section 10 of…

- **Court:** NCLT
- **Order date:** 10 Mar 2023
- **Citation:** TCN-2023-NCLT-04277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/infiniti-techlabs-llp-cp-ib-no-112-10-hdb-2021-6be0a5cc

## Summary

### Background

The Corporate Applicant, M/s. Infiniti Techlabs LLP, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The founder of the Corporate Debtor, Mr. K. Ashish Dev, passed away unexpectedly in September 2018. Subsequently, partners appointed Mr. Ajay Kaushik as CEO. Mr. Veda Vyas Gangula had advanced an unsecured loan to the firm, expecting repayment in the short term. Due to unforeseen events, repayment was delayed. An agreement was made to compensate Mr. Gangula with 18% interest from 2019 for consenting to the sale of a division. However, due to operational cash flow issues, Mr. Gangula was not paid the agreed amount and demanded repayment of the entire

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## Facts

M/s. Infiniti Techlabs LLP (Corporate Debtor/Petitioner) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP against itself. The founder, Mr. K. Ashish Dev, passed away in September 2018. Mr. Ajay Kaushik was appointed as CEO. Mr. Veda Vyas Gangula provided an unsecured loan, expecting short-term repayment. Repayment was delayed, leading to an agreement to compensate Mr. Gangula with 18% interest from 2019 for consenting to a division sale. Due to cash flow problems, Mr. Gangula wasn't paid and demanded full loan repayment with interest. The firm anticipated Rs.2+ crores in orders by April-May 2020, but Covid-19 caused revenue decline. A meeting on 2020-05-28 revealed defaults of Rs.1,30,41,351/- to financial

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant, M/s. Infiniti Techlabs LLP, under Section …

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

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**Reasoning:** The court considered the submissions made by the Petitioner's Counsel and the contents of

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The Corporate Applicant, M/s. Infiniti Techlabs LLP, demonstrated its inability

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Respondents:** Infiniti Techlabs…; Veda Vyas G…

## Timeline

- **2018-09-01 — Death of F…**: Mr. K. Ashish Dev, the founder of the Corporate Debtor, passed away unexpectedly due to…
- **2019-01-01 — Interest Ag…**: An agreement was made to compensate Mr. Veda Vyas Gangula with 18% interest from 2019 for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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