# In the matter of Sarga Udaipur Hotels & Resorts Private Limited C.P. (I.B) No. 202-KB-2021

> NCLT judgment dated 2022-04-29. Citation: TCN-2022-NCLT-02944. The case pertains to an application filed by Sarga Udaipur Hotels and Resorts Private (formerly…

- **Court:** NCLT
- **Order date:** 29 Apr 2022
- **Citation:** TCN-2022-NCLT-02944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sarga-udaipur-hotels-resorts-private-limited-cp-ib-no-202-kb-2021-9e4ddf4e

## Summary

### Background

The case pertains to an application filed by Sarga Udaipur Hotels and Resorts Private (formerly known as Shristi Udaipur Hotels and Resorts Private Limited) under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The application was filed due to the company's inability to repay its debts, with financial creditors initiating proceedings under the SARFAESI Act, 2002, and operational creditors sending demand notices. The corporate applicant was incorporated on 02.02.2007 and is involved in the business of hotels, camping sites, and other provisions of short-stay accommodations.

## Facts

Sarga Udaipur Hotels and Resorts Private, formerly known as Shristi Udaipur Hotels and Resorts 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 February 2, 2007, operates in the hospitality sector, providing hotel and camping site services. The application was prompted by the company's inability to repay debts owed to various financial and operational creditors, totaling Rs. 29,52,27,575 as of July 15, 2021. Financial creditors had initiated proceedings under the SARFAESI Act, 2002, and operational creditors had issued demand notices. The company's financial distress was compounded by a lack of new

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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 IBC allows a corporate applicant to initiate CIRP against itself if it

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**Reasoning:** The court found that the application was free from defects and complete in all aspects as

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**Interpretation:** This means that the application met all the procedural and substantive

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**Application:** The court's finding that the application was complete and free from defects

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Respondents:** Sarga Udaipur…

## Timeline

- **2007-02-02 — Incorporation of…**: The Corporate Applicant, Sarga Udaipur Hotels…
- **2021-07-26 — Board Reso…**: Board Resolution dated 26.07.2021…

## 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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