# In the matter of Rai Ispat Private Limited CP-IB-272(CHE)-2021

> NCLT judgment dated 2022-03-21. Citation: TCN-2022-NCLT-03630. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Mar 2022
- **Citation:** TCN-2022-NCLT-03630
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rai-ispat-private-limited-cp-ib-272che-2021-b59ff0a9

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Rai Ispat Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's inability to meet its financial obligations to its Financial and Operational Creditors. The Corporate Applicant, Rai Ispat Private Limited, claimed default in financial obligations.

## Facts

Rai Ispat Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company's registered office is located in Chennai. The company was incorporated on 04.05.1987. The application was filed due to defaults in financial obligations to Financial and Operational Creditors. The total amount of default was Rs. 37,02,32,477, comprising Rs. 10,92,63,170 to Financial Creditors and Rs. 26,09,69,307 to Operational Creditors. The company passed a Board resolution on 23.08.2021 for initiating CIRP. The company's accumulated losses at the end of the financial year 2020-21 were Rs. 38.37 crore, while its paid-up capital was Rs. 69.83 lakh. The company proposed Mr. Asir

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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 court considered the documents submitted, including financial statements, board

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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 court applied Section 10 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Respondents:** Rai Ispat Private…

## Timeline

- **1987-05-04 — Company Incor…**: Rai Ispat Private…
- **2021-08-23 — Board Reso…**: The Company passed a Board resolution for initiating a Corporate Insolvency Resolution…

## 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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