# In the matter of Jayam Vyapaar Private Limited

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00789. Jayam Vyapaar Pvt. Ltd., the Corporate Applicant, filed an application under Section 10 of the…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayam-vyapaar-private-limited-6a53ecdd

## Summary

### Background

Jayam Vyapaar Pvt. Ltd., the Corporate Applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC) on March 25, 2023, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Applicant was assessed to Income Tax for the assessment year 2012-13 on March 25, 2015, for Rs. 2,86,44,540/-. An appeal against this order was dismissed by the Commissioner of Income Tax (Appeals) Kolkata on December 18, 2018. The Appellate Authority confirmed the demand of Income tax raised in the assessment order, finding that the Income has escaped tax due to money laundering. The corporate applicant has not been able to pay the tax demand and consequently filed this application in the year 2023 for initiating CIRP.

## Facts

Jayam Vyapaar Pvt. Ltd. filed an application under Section 10 of the IBC to initiate CIRP on 25.03.2023. The company faced an Income Tax assessment for 2012-13, with a demand of Rs. 2,86,44,540/- issued on 25.03.2015. An appeal against this assessment was dismissed on 18.12.2018, and the appellate authority confirmed the tax demand, citing potential money laundering. The company did not challenge the appellate authority's order before the ITAT, making it final. The date of default for Income Tax payment was determined to be 18.12.2018. The company showed the Income Tax liability as a contingent liability until 31.03.2021, and as a liability in the balance sheet for the year ending 31.03.2022. The application under Section 10 of IBC was filed in 2023. The court found

…

## Issues and analysis

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

**Ratio:** Section 10 of the IBC allows a corporate applicant to initiate CIRP. However, the

…

**Reasoning:** The court found that the Corporate Applicant had filed the application to avoid Income

…

**Interpretation:** The Adjudicating Authority has the power to reject an application under Section

…

**Application:** The court applied the ratio to the facts of the case and found that the

…

## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** M/s Jayam Vyapaar…
- **Respondents:** Jayam Vyapaar…

## Timeline

- **2015-03-25 — Income Tax As…**: Corporate Applicant was assessed to Income Tax for the assessment year 2012-13 for an…
- **2018-12-18 — Appeal Dis…**: Appeal against the Income Tax assessment order was dismissed by the Commissioner of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayam-vyapaar-private-limited-6a53ecdd