# In the matter of Rental Stay Private Limited CP (IB) No. 91-ALD-2022

> NCLT judgment dated 2023-04-11. Citation: TCN-2023-NCLT-03865. M/s Rental Stay Private Limited filed an application under Section 10 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 11 Apr 2023
- **Citation:** TCN-2023-NCLT-03865
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rental-stay-private-limited-cp-ib-no-91-ald-2022-d5a44e88

## Summary

### Background

M/s Rental Stay Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against itself. The company, incorporated on March 8, 2016, operated an online portal for real estate and facility management, catering primarily to student housing. Due to the Covid-19 pandemic, the company faced economic difficulties, leading to its inability to pay creditors and continue business. The application was supported by a board resolution dated March 11, 2022, and other relevant documents.

## Facts

M/s Rental Stay Private Limited, a company operating an online portal for student housing, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against itself. The company was incorporated on March 8, 2016. The company's business was significantly impacted by the Covid-19 pandemic, leading to financial difficulties and an inability to pay its creditors. The company's application was supported by a board resolution dated March 11, 2022. The company owes Rs.35,00,000/- to financial creditors and Rs.96,45,869/- to operational creditors. The members/shareholders of the Corporate Applicant have given their consent by way of a special resolution passed in the Extraordinary General Meeting held on 11th March, 2022 to file the

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## Issues and analysis

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

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

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

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**Interpretation:** Section 10 provides a mechanism for corporate debtors facing financial distress

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**Application:** The Adjudicating Authority found that the application met the requirements of

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## Parties

- **Judges:** Praveen…; Ashish…
- **Respondents:** M/s Rental Stay…

## Timeline

- **2016-03-08 — Incorporation of…**: The Corporate Applicant, M/s Rental Stay…
- **2022-03-11 — Board Reso…**: Board Resolution passed to file…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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