# In the matter of Purplestream Convergence Private Limited

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01226. 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-01226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purplestream-convergence-private-limited-22c19e13

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, 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 and relevant documents demonstrating the debt and default.

## 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 initiation of Corporate Insolvency Resolution Process (CIRP). The company defaulted in meeting its financial obligations to its Financial Creditors (Secured/Unsecured Creditors) and Operational Creditors. The total debt defaulted by the Corporate Applicant is Rs.7,55,50,724/-, with the date of default mentioned as 30.05.2019. The application included ledgers of creditors, a provisional balance sheet, and financials for the previous three years as evidence of debt. An Extraordinary General Meeting of the Shareholders held on 05.11.2021 resolved to file the application. The applicant served

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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 application and the documents submitted,

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**Interpretation:** Section 10 provides the mechanism for a corporate debtor to initiate CIRP when

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**Application:** The Corporate Applicant demonstrated the existence of debt and default and

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## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Appellants:** M/s. PURPLESTREAM…
- **Respondents:** PURPLESTREAM…

## Timeline

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

## 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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