# In the matter of Purplestream Convergence Private Limited

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01211. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01211
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purplestream-convergence-private-limited-0cd2db00

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Purplestream Convergence Private Limited ('Corporate Applicant') for initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the Corporate Applicant's default in meeting its financial obligations to its creditors. The Corporate Applicant is a private limited company incorporated on 24.08.2011. The application was supported by the consent of the shareholders obtained in an Extraordinary General Meeting held on 05.11.2021.

## Facts

Purplestream Convergence Private Limited, a private limited company incorporated on 24.08.2011, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The company defaulted on its financial obligations to its Financial Creditors and Operational Creditors. The total debt defaulted by the Corporate Applicant was Rs. 7,55,50,724/-, with the date of default mentioned as 30.05.2019. The Corporate Applicant's liabilities were more than one crore rupees. In an Extraordinary General Meeting held on 05.11.2021, the shareholders resolved to file the application under Section 10 of IBC. The Corporate Applicant proposed Mrs. Chitra Perinkulam Ragavan as the Interim Resolution Professional

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## Issues and analysis

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

**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 documents submitted, including the balance

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**Interpretation:** Section 10 of the IBC provides a mechanism for a corporate debtor to initiate

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**Application:** The Adjudicating Authority admitted the application, finding that the Corporate

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## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Respondents:** PURPLESTREAM…
- **Advocates:** G. Vairava…; B. Raghu…; +1 more

## Timeline

- **2011-08-24 — Incorporation of…**: Purplestream Convergence Private Limited was…
- **2019-05-30 — Date of D…**: The date of default in meeting financial…

## 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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