# In the matter of Kling Enterprises India Limited CP (IB) No. 102-10-HDB-2022

> NCLT judgment dated 2022-10-27. Citation: TCN-2022-NCLT-00610. The case involves an application filed by Kling Enterprises India Limited under Section 10 of…

- **Court:** NCLT
- **Order date:** 27 Oct 2022
- **Citation:** TCN-2022-NCLT-00610
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kling-enterprises-india-limited-cp-ib-no-102-10-hdb-2022-6d96b2b2

## Summary

### Background

The case involves an application filed by Kling Enterprises India Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor, incorporated on April 5, 2007, is engaged in trading, underwriting, and investment activities. The company defaulted on payments to creditors due to liquidity issues and adverse market conditions, leading to significant losses. The Corporate Debtor issued a notice on January 12, 2022, to its directors regarding the invocation of CIRP, and shareholders passed a special resolution on February 21, 2022, consenting to the initiation of CIRP. The Corporate Debtor authorized its director, Shri M. Dasigi Venkata Surya Prakash Rao, to file the application

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## Facts

Kling Enterprises India Limited, incorporated on 2007-04-05, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company, engaged in trading, underwriting, and investment, defaulted on payments due to liquidity crunch and adverse market conditions. A notice was issued to directors on 2022-01-12, and a special resolution was passed by shareholders on 2022-02-21, consenting to CIRP. The Corporate Debtor authorized Shri M. Dasigi Venkata Surya Prakash Rao to file the application. The company's balance sheet for FY 2020-21 showed significant long-term borrowings and current liabilities. The Assessing Officer made disallowances, leading to challenged appeals. The Board of

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant under Section 10 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority, after perusing the records and balance sheet of the Corporate

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate insolvency

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**Application:** The Corporate Applicant, Kling Enterprises India Limited, demonstrated that it

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## Parties

- **Judges:** DR.VENKATA…; Satya Ranjan…
- **Respondents:** Kling Enterprises…

## Timeline

- **2007-04-05 — Incorporation of…**: Kling Enterprises India…
- **2022-01-12 — Notice to Di…**: The Corporate Debtor issued a notice to its directors regarding the invocation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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