# In the matter of Penguine Hospitality Private Limited C.P. (I.B) No. 105-KB-2022

> NCLT judgment dated 2022-11-02. Citation: TCN-2022-NCLT-00561. Penguine Hospitality Private Limited filed a petition under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 Nov 2022
- **Citation:** TCN-2022-NCLT-00561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/penguine-hospitality-private-limited-cp-ib-no-105-kb-2022-a9b1377d

## Summary

### Background

Penguine Hospitality Private Limited filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company faced financial difficulties due to losses incurred by its restaurant 'Veda'. It had entered into various agreements, including a brand licensing agreement with Gateway Hospitality Private Limited and lease agreements with Artistery House Private Limited and Apeejay Private Limited. The restaurant suffered significant losses, leading to the termination of the brand licensing agreement. The company was unable to pay the rent for the premises since March 2015, leading to the termination of the lease. An arbitration award was pronounced on 02.05.2019, but an

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## Facts

Penguine Hospitality Private Limited (CIN: U51900WB2010PTC151549) filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against itself. The company's registered office is located at 8, Ho Chi Minh Sarani Ground Floor, Kolkata, WB 700071. The application was filed through its Director, Mr. Mohit Sancheti, authorized by a Board Resolution dated 28 February 2022. The shareholders of the company had given their consent via a resolution passed on 28 February 2022. The company was incorporated on 23 July 2010. The nominal share capital is ₹40,00,000/-, and the paid-up share capital is ₹37,26,000/-. The company faced financial difficulties due to losses incurred by its restaurant 'Veda'. It had entered into a brand licensing

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## Issues and analysis

### Issue 1: Whether the application filed by Penguine Hospitality Private Limited under Section 10 of the …

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

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**Reasoning:** The Adjudicating Authority considered the facts presented in the application and the

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

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**Application:** In this case, the Adjudicating Authority found that Penguine Hospitality

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Respondents:** Penguine Hospitali…

## Timeline

- **2010-07-23 — Incorpor…**: The Corporate Applicant was…
- **2011-08-01 — Brand Licensing…**: The Corporate Applicant executed a brand licensing agreement with Gateway Hospitality…

## 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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