# In the matter of Karvy Stock Broking Limited

> NCLT judgment dated 2024-09-10. Citation: TCN-2024-NCLT-00629. The application was filed by the Applicant/Corporate Debtor (Karvy Stock Broking Limited) under…

- **Court:** NCLT
- **Order date:** 10 Sept 2024
- **Citation:** TCN-2024-NCLT-00629
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karvy-stock-broking-limited-f1e07918

## Summary

### Background

The application was filed by the Applicant/Corporate Debtor (Karvy Stock Broking Limited) under Rule 11 and 55 of the National Company Law Tribunal (NCLT) Rules, 2016, seeking to take on record an additional affidavit for the proper adjudication of the main petition CP(IB) No. 332/9/HDB/2021. The Respondent, Kapston Facilities Management Limited, an Operational Creditor (OC), initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (CD) under Section 9 of the Insolvency and Bankruptcy Code (IBC), alleging an operational debt amounting to Rs. 1,07,63,333/-.

## Facts

Kapston Facilities Management Limited, an Operational Creditor, initiated CIRP against Karvy Stock Broking Limited, the Corporate Debtor, under Section 9 of the IBC, claiming an operational debt of Rs. 1,07,63,333/-. Karvy Stock Broking Limited filed an application seeking to bring an additional affidavit on record, arguing that 85 invoices, listed in Annexure 12, might be barred under Section 10A of the IBC, precluding CIRP initiation. Karvy Stock Broking Limited contended that a significant portion of the debt claimed by Kapston Facilities Management Limited was barred by Section 10A of the IBC because the invoices fell between March 25, 2020, and March 24, 2021. Kapston Facilities Management Limited argued that the initial default occurred on October 1, 2019, before

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## Issues and analysis

### Issue 1: Whether the additional affidavit filed by the Applicant/Corporate Debtor should be taken on record …

**Ratio:** Rule 11 and 55 of the NCLT Rules, 2016, provide the Tribunal with the discretion to allow

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**Reasoning:** The Authority has discretion to allow the filing of additional pleadings or documents if

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**Interpretation:** The NCLT Rules grant the Tribunal the power to permit additional pleadings to

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**Application:** The NCLT considered the additional affidavit filed by the Applicant/Corporate

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Respondents:** M/s. Karvy Stock…; Kapston Facilities…

## Timeline

- **2019-10-01 — Initial Default Date…**: The Respondent claims the initial default occurred on this date, prior to the Section 10A…
- **2020-03-25 — Start of Section 10A…**: The Applicant contends that invoices falling within this period are barred by Section 10A…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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