# In the matter of Office Beanz Private Limited

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02284. Office Beanz Private Limited filed a petition under Section 10 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/office-beanz-private-limited-642bdda2

## Summary

### Background

Office Beanz Private Limited filed a petition under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company, engaged in leasing and sub-leasing, faced financial difficulties due to the COVID-19 pandemic, leading to vacant premises and termination of leases. The Corporate Applicant claimed inability to sustain itself and meet rental obligations and service dues. The application was supported by a resolution passed on 17.11.2020, authorizing Mr. Sharad Bajaj to file the petition. Several creditors filed replies, alleging that the Corporate Applicant was solvent, had siphoned off funds, and manipulated financial statements. The creditors also raised concerns about the validity of lease deeds

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## Facts

Office Beanz Private Limited, a company engaged in leasing and sub-leasing, filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company's registered office is located in Gurgaon, Haryana. The company claimed financial distress due to the COVID-19 pandemic, which led to vacant leased premises and termination of sub-leases. The company's director, Mr. Sharad Bajaj, was authorized to file the petition via a board resolution dated 17.11.2020. The company's nominal and paid-up share capital is Rs. 1,000,000/-. The company's financial statements for 2019-20 and 2020-21, along with provisional statements as of 08.02.2021, were submitted. Creditors opposed the application, alleging

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## Issues and analysis

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

**Ratio:** Section 10A of the IB Code suspends the initiation of CIRP for defaults arising on or

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**Reasoning:** The Adjudicating Authority observed that the date of default mentioned in the application

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**Interpretation:** Section 10A is interpreted as a non-obstante clause that takes precedence over

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**Application:** Since the date of default occurred during the period specified in Section 10A,

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## Parties

- **Judges:** P.S.N. P…; UMESH KUMAR…
- **Respondents:** Office Beanz…

## Timeline

- **2020-03-25 — Start of Section 10A…**: Defaults arising on or after this date are subject to the suspension of CIRP initiation…
- **2020-11-17 — Board Reso…**: Resolution passed authorizing Mr. Sharad Bajaj to file the petition under Section 10 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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