# In the matter of Roopam Textiles Trading Private Limited

> NCLT judgment dated 2023-07-31. Citation: TCN-2023-NCLT-02262. Roopam Textiles Trading Private Limited filed an application under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jul 2023
- **Citation:** TCN-2023-NCLT-02262
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/roopam-textiles-trading-private-limited-69a0381b

## Summary

### Background

Roopam Textiles Trading Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against itself. The company, incorporated on 22.04.2004, cited its inability to pay debts amounting to ₹10,00,12,895.49. The company's registered office is located in Bhubaneswar, Odisha. The company attributes its financial distress to economic slowdown, demonetization, GST implementation, COVID-19, and difficulties in securing adequate loan amounts.

## Facts

Roopam Textiles Trading Private Limited, incorporated on 22.04.2004, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against itself. The company's registered office is in Bhubaneswar, Odisha. The company has an authorized share capital of Rs. 75,00,000 and a nominal share capital of Rs. 80,00,000. The company is engaged in the business of textiles, fabrics, and wearing apparel. The company defaulted on payments to operational creditors (Rs. 3,26,44,615.85), financial creditors (Rs. 6,37,28,980.67), and statutory taxes (Rs. 36,39,298). The company attributes its financial difficulties to economic slowdown, demonetization, GST implementation, and COVID-19. A secured creditor

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## Issues and analysis

### Issue 1: Whether the application filed by Roopam Textiles Trading Private Limited under Section 10 of the …

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

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**Reasoning:** The NCLT considered the facts presented by the Corporate Applicant, including its

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**Interpretation:** Section 10 of the IBC, 2016 provides an avenue for a corporate debtor facing

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**Application:** The NCLT applied Section 10 of the IBC, 2016 to the facts of the case and

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Respondents:** Roopam Textiles…

## Timeline

- **2004-04-22 — Incorporation o…**: Roopam Textiles Trading…
- **2023-01-04 — Board Reso…**: Board of Directors' meeting held wherein resolution was passed to approach Adjudicating…

## 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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