# In the matter of RSI Private Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01616. RSI Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rsi-private-limited-6f91bc86

## Summary

### Background

RSI Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking the commencement of the Corporate Insolvency Resolution Process (CIRP) in respect of itself. The company, an MSME, faced financial difficulties due to market conditions and inability to meet export obligations. It had outstanding dues to Customs Authorities and had previously been declared a sick unit, with references to BIFR. The application was filed after earlier proceedings were dismissed or withdrawn.

## Facts

RSI Private Limited, an MSME with 150-200 workers, engaged in manufacturing, importing, and exporting polymer and cast-iron products, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company faced financial distress due to market conditions, leading to its inability to meet export obligations under advance licenses granted under the Foreign Trade Policy. The company defaulted on payments to the Customs Authorities, with outstanding dues of Rs. 5,17,47,242/- as of 01.12.2016 and Rs. 9,12,81,472/- as of 15.03.2019. The company's net worth was negative as of March 2017, with liabilities exceeding assets. The company had previously been declared a sick unit and

…

## Issues and analysis

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

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

…

**Reasoning:** The NCLT considered the evidence presented, including the company's balance sheet,

…

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

…

**Application:** The NCLT applied Section 10 to the facts of the case, finding that RSI Private

…

## Parties

- **Judges:** BIDISHA BA…; SHRI. D.…; +1 more
- **Respondents:** RSI Private…

## Timeline

- **1958-01-08 — Incorporation of…**: RSI Private Limited was…
- **1992-03-27 — Conversion to Public…**: RSI Private Limited converted into a public limited company from a private limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rsi-private-limited-6f91bc86