# In the matter of Jayesh Lifescience India Private Limited

> NCLT judgment dated 2024-08-05. Citation: TCN-2024-NCLT-00881. The application was filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 5 Aug 2024
- **Citation:** TCN-2024-NCLT-00881
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jayesh-lifescience-india-private-limited-a7ae02a5

## Summary

### Background

The application was filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Jayesh Lifescience India Private Ltd for the initiation of the Corporate Insolvency Resolution Process (CIRP). The company defaulted on financial obligations to its Financial Creditors amounting to Rs. 15,84,22,776/-. The Corporate Debtor is a Private Limited Company incorporated on 01.04.2015. The Corporate Debtor has no Operational Creditors but has liabilities to seven Financial Creditors. As of 31.01.2024, the cumulative loss of the Company amounts to Rs. 15,84,22,776/-, exceeding its potential.

## Facts

Jayesh Lifescience India Private Limited (Corporate Debtor) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of CIRP due to a default of Rs. 15,84,22,776/- to its Financial Creditors. The Corporate Debtor is a Private Limited Company incorporated on 01.04.2015. The company has liabilities to seven Financial Creditors but no Operational Creditors. As of 31.01.2024, the cumulative loss of the company is Rs. 15,84,22,776/-, exceeding its potential. Axis Bank had issued a sanction letter of credit facility dated 16.03.2018 for Rs. 7.50 Crores, and State Bank of India issued a sanction letter dated 30.03.2019 for Rs. 3 Crores. The account of the Corporate Debtor was classified as NPA on 28.10.2019, and a demand notice was

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## Issues and analysis

### Issue 1: Whether the application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The court considered the facts presented, including the company's financial distress, the

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

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**Application:** The court found that the Corporate Debtor had demonstrated a default in respect

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Respondents:** Jayesh Lifescience…

## Timeline

- **2015-04-01 — Incorporation of…**: Jayesh Lifescience India…
- **2018-03-16 — Sanction Letter from…**: Axis Bank issued a sanction letter of…

## 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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