# In the matter of Lokesh Secfin Private Limited

> NCLT judgment dated 2023-09-25. Citation: TCN-2023-NCLT-01483. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Sept 2023
- **Citation:** TCN-2023-NCLT-01483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lokesh-secfin-private-limited-036b7c9c

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Lokesh Secfin Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was filed due to defaults in financial obligations to Financial and Operational Creditors. The Corporate Applicant is a private limited company incorporated on 02.04.1996. The applicant initially proposed Mr. S.S.Ravichndran as the IRP, but later proposed Mr. Gopinath after Mr. Ravichandran withdrew his consent.

## Facts

Lokesh Secfin Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to defaults in financial obligations. The company, incorporated on 02.04.1996, defaulted on payments to Financial Creditors amounting to Rs.662,98,62,343.45/- and to Operational Creditors amounting to Rs.1,48,650/-. The company initially proposed Mr. S.S.Ravichndran as the IRP, but later proposed Mr. Gopinath after the former withdrew his consent. The Corporate Applicant was a Corporate Guarantor of SBQ Steels Ltd, which underwent CIRP and was dissolved. The application was supported by audited financial statements, board resolutions, and details of defaults. The Tribunal admitted the

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## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by …

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

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**Reasoning:** The Tribunal observed that the Corporate Debtor had committed a default in repayment of

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

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**Application:** The Tribunal applied Section 10 to the facts of the case, noting the default in

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Lokesh Secfin…
- **Advocates:** Rohan Rajas…; Ramasubramaniam…

## Timeline

- **1996-04-02 — Incorporation of…**: Lokesh Secfin Private Limited was…
- **2022-12-14 — Board Reso…**: The Applicant Company placed on record the Board resolution for initiating Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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