# In the matter of Rapid Buildwell Limited Company Petition No. IB-522-ND-2022

> NCLT judgment dated 2022-11-21. Citation: TCN-2022-NCLT-00386. The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Nov 2022
- **Citation:** TCN-2022-NCLT-00386
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rapid-buildwell-limited-company-petition-no-ib-522-nd-2022-d7b60641

## Summary

### Background

The case pertains to an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s. Rapid Buildwell Limited, the Corporate Applicant, for initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant sought to initiate CIRP due to its inability to repay its debts to its creditors. The application was filed before the National Company Law Tribunal (NCLT), New Delhi.

## Facts

M/s. Rapid Buildwell Limited (the Corporate Applicant) filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The application was supported by a board resolution dated 27.04.2022, authorizing Mr. Sahil Anand & Mr. Praveen Kumar, directors of the company, to initiate the CIRP. The company was incorporated on 25.04.2005 as a Public Limited company. The Corporate Applicant had availed unsecured short-term loans from Sharan Hospitality Private Limited (SHPL) amounting to Rs. 4,67,45,701/-, with a first tranche of Rs. 40,00,000/- disbursed on 24.01.2017, to be repaid by 31.03.2019. The facility was partly repaid, reducing the outstanding to Rs. 4,22,75,000/-. The Corporate

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## Issues and analysis

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

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

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**Reasoning:** The NCLT considered the documents annexed by the Corporate Applicant, including the

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

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**Application:** The NCLT applied the provisions of Section 10 and Rule 7 to the facts of the

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## Parties

- **Judges:** SHRI. P.S.N.…; RAHUL BHA…
- **Respondents:** M/s. RAPID…
- **Advocates:** Suresh Dutt…

## Timeline

- **2005-04-25 — Company Incor…**: M/s. Rapid Buildwell Limited was…
- **2017-01-24 — Loan Disburseme…**: First tranche of Rs. 40,00,000/- disbursed…

## 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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