# In the matter of Kaushal Silk Mills Private Limited

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00648. The Corporate Applicant, Kaushal Silk Mills Private Limited, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00648
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kaushal-silk-mills-private-limited-982fb228

## Summary

### Background

The Corporate Applicant, Kaushal Silk Mills Private Limited, filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016, seeking to initiate its own Corporate Insolvency Resolution Process (CIRP). The application was filed due to financial stress, making the company unable to repay its debts to creditors. The company was incorporated on 22.09.1994 and is in the business of manufacturing, dyeing, bleaching, mercerizing, printing, or otherwise processing textile piece goods.

## Facts

Kaushal Silk Mills Private Limited, incorporated on 22.09.1994, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP due to financial stress and inability to repay debts. The company's registered office is in Mumbai, giving the NCLT Mumbai jurisdiction. The company is involved in textile manufacturing and processing. The company has been incurring losses for the past 5 years and has unsecured financial creditors, operational creditors, and statutory creditors. The total debt in default is Rs. 5,20,59,371/-, with the date of default stated as 10.01.2023. The Corporate Person's revenue from operations is NIL as on 11.11.2022. The Tribunal directed the Applicant to issue notice to all creditors of the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application made by the Corporate Applicant is complete in all respects as required by …

**Ratio:** The Adjudicating Authority must determine if the application meets the requirements of

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**Reasoning:** The Bench reviewed the application and supporting documents and found that the

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**Interpretation:** This means that all necessary information and documentation were provided in

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**Application:** The court applied this interpretation to the facts presented in the

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Respondents:** Kaushal Silk…

## Timeline

- **1994-09-22 — Incorporation o…**: Kaushal Silk Mills Private Limited was…
- **2023-01-10 — Board Me…**: The Board of Directors authorized Mr. Shikharchand Mohanlal Paharia to file the necessary…

## 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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