# In the matter of JIJI INDUSTRIES LIMITED

> NCLT judgment dated 2025-01-08. Citation: TCN-2025-NCLT-00660. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Jan 2025
- **Citation:** TCN-2025-NCLT-00660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jiji-industries-limited-1f12ccad

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Jiji Industries Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against itself. The company, incorporated in 2003, faced financial difficulties leading to the cessation of its business operations in 2012. The application was filed on 23.02.2023 by Mr. Gourav Mungad, a director of the company. The company has outstanding financial and operational debts. The applicant has also provided balance sheets for the financial years 2020-21, 2021-22, and a provisional balance sheet for 2022-23.

## Facts

Jiji Industries Limited, incorporated on 01.05.2003, filed an application on 23.02.2023 under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against itself. The company's business operations ceased in 2012 due to financial crisis and a fire that destroyed raw materials, finished goods, and records. As of 10.02.2023, the company had outstanding financial debts of Rs 4,20,57,394 and operational debts of Rs 8,32,65,518. The company availed loan facilities from banks, which were paid in full until 2019. The company's board passed a resolution on 02.01.2023 to consider CIRP, and a special resolution was passed on 24.01.2023. The Adjudicating Authority directed the applicant to serve notices to creditors and advertise the hearing, which was complied

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## Issues and analysis

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

**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 facts presented by the applicant, including the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The Adjudicating Authority found that Jiji Industries Limited had committed a

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## Parties

- **Judges:** Chitra Ram…; KAUSHALENDRA…
- **Appellants:** Jiji Industries…
- **Respondents:** Jiji Industries…

## Timeline

- **2003-05-01 — Incorporation of Jiji…**: Jiji Industries Limited…
- **2012-01-01 — Cessation of Business…**: Jiji Industries Limited ceased its business…

## 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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