# In the matter of K.P.R. Industries (India) Limited CP (IB) No. 67-10-AMR-2021

> NCLT judgment dated 2022-01-19. Citation: TCN-2022-NCLT-04418. M/s. KPR Industries (India) Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 19 Jan 2022
- **Citation:** TCN-2022-NCLT-04418
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kpr-industries-india-limited-cp-ib-no-67-10-amr-2021-afc870e5

## Summary

### Background

M/s. KPR Industries (India) Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) for itself. The company cited its inability to meet its obligations to its Financial & Operational Creditors due to unavoidable market conditions that led to the suspension of its operations.

## Facts

M/s. KPR Industries (India) Limited, a company incorporated on 07.10.2011 in the then combined State of Andhra Pradesh, engaged in the business of manufacturers, producers, importers, exporters, merchants, distributors, and commission agents in agro chemicals. Due to unavoidable market conditions, the company suspended its operations but still owes amounts to Financial and Operational Creditors. The company filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) for itself. Notices could not be served on the Financial Creditors, leading to substituted service via publication. The court found no suspicious circumstances surrounding the petition and acknowledged the company's

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## Issues and analysis

### Issue 1: Whether the 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 court reasoned that the Corporate Debtor had defaulted in payment of its debts to

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** M/s. K PR…
- **Advocates:** M.Madhusudhana…

## Timeline

- **2011-10-07 — Incorporation of…**: The Corporate Debtor, M/s. KPR Industries (India) Limited, was incorporated in the then…
- **N/A — Suspension of O…**: Due to unavoidable market conditions, the…

## 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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