# In the matter of Kaanha Shipping Private LImited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02702. The case pertains to a petition filed by M/s. Kaanha Shipping Private Limited under Section 10…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02702
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kaanha-shipping-private-limited-64136277

## Summary

### Background

The case pertains to a petition filed by M/s. 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. One of the Operational Creditors, Visakhapatnam Port Trust, had issued demand notices and filed a suit for recovery of dues.

## Facts

M/s. Kaanha Shipping Private Limited, the Corporate Debtor, 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 Corporate Debtor defaulted on repayment of Rs.4,14,29,056/- as on 16.08.2017. The shareholders passed a special resolution on 11.11.2022 to initiate CIRP. Visakhapatnam Port Trust, an Operational Creditor, issued demand notices on 16.08.2017 and 20.07.2018 and filed a suit for recovery of Rs. 5,77,16,671/- on 12.09.2018. The Corporate Debtor's net worth is completely eroded. The Corporate Debtor filed the petition seeking to initiate CIRP.

## 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 Tribunal considered the facts presented, including the default in payment of

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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 Tribunal applied the provisions of Section 10 of the IBC to the facts of

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** Kaanha Shipping…

## 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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