# In the matter of KADKOMP SYSTEMS PVT LTD

> NCLT judgment dated 2025-02-13. Citation: TCN-2025-NCLT-00495. Kadkomp Systems Private Limited filed an application under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 Feb 2025
- **Citation:** TCN-2025-NCLT-00495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kadkomp-systems-pvt-ltd-33062ef7

## Summary

### Background

Kadkomp Systems Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company cited financial difficulties due to a slowdown in the automotive industry, demonetization, and the COVID-19 pandemic as reasons for defaulting on its debts. The application was filed on 31.10.2021.

## Facts

Kadkomp Systems Private Limited, incorporated on 07.07.1989, filed an application on 31.10.2021 under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The company operates as an engineering services company providing Weld-line Fixture designing and CAD/CAM software solutions. The company's business was impacted by a slowdown in the automotive industry, demonetization, and the COVID-19 pandemic. The company has seventeen Operational Creditors and two Financial Creditors. The total debt obligation stands at Rs. 5,33,74,171/-, including Rs. 4,08,28,150/- owed to Financial Creditors and Rs. 44,02,022.87/- owed to Operational Creditors, along with statutory liabilities totalling Rs.81,43,997.96/-. Indian Overseas Bank and IDFC First Bank

…

## Issues and analysis

### Issue 1: Whether the Corporate Applicant is in default of a debt due and payable, exceeding the minimum …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, stipulates the minimum threshold

…

**Reasoning:** The NCLT found that the Corporate Applicant was in default of a debt due and payable, and

…

**Interpretation:** Section 4 sets the financial prerequisite for initiating CIRP, ensuring that

…

**Application:** The total debt owed by the Corporate Applicant to its Financial and Operational

…

## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** KADKOMP SYSTEMS…

## Timeline

- **1989-07-07 — Incorporation of…**: Kadkomp Systems Private…
- **2019-11-02 — NPA Classif…**: Loan account classified as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

---

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/kadkomp-systems-pvt-ltd-33062ef7