# In the matter of Kaanha Shipping Private LImited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02708. The case pertains to a petition filed by Kaanha Shipping Private Limited under Section 10 of…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02708
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kaanha-shipping-private-limited-03f17804

## Summary

### Background

The case pertains to a petition filed by Kaanha Shipping Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to its inability to meet its obligations to its Operational Creditors. The Corporate Debtor was incorporated on 25.02.2005. The shareholders passed a special resolution on 11.11.2022 to initiate CIRP. Visakhapatnam Port Trust, an Operational Creditor, issued demand notices and filed a suit for recovery of dues.

## Facts

Kaanha Shipping Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company was incorporated on 25.02.2005. The company's financial performance has been poor since FY 2015-16, with consistent losses. Visakhapatnam Port Trust, an Operational Creditor, issued demand notices on 16.08.2017 & 20.07.2018 and filed a suit on 12.09.2018 for recovery of Rs. 5,77,16,671/-. The Corporate Applicant defaulted on repayment of Rs. 4,14,29,056/- on 16.08.2017. The shareholders passed a special resolution on 11.11.2022 to initiate CIRP. The Corporate Applicant filed an Interlocutory application vide IA No.30/2019 praying to set aside the ex-parte order and to receive

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Corporate Debtor under Section 10 of the Insolvency and …

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

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**Reasoning:** The court considered the fact that the Corporate Applicant has instituted the present

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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 court applied Section 10 of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** Kaanha Shipping…
- **Advocates:** Mr.B.Rav…; Mr.Sh.Kaja…; +3 more

## Timeline

- **2005-02-25 — Incorporation of…**: Kaanha Shipping Private…
- **2017-08-16 — Demand Notice by…**: Visakhapatnam Port Trust issued a demand…

## 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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