# In the matter of Shandong Chunlong Group India Private Limited

> NCLT judgment dated 2024-07-24. Citation: TCN-2024-NCLT-00966. The case pertains to an application filed by Shandong Chunlong Group India Private Limited, the…

- **Court:** NCLT
- **Order date:** 24 Jul 2024
- **Citation:** TCN-2024-NCLT-00966
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shandong-chunlong-group-india-private-limited-3ad44204

## Summary

### Background

The case pertains to an application filed by Shandong Chunlong Group India Private Limited, the Corporate Applicant, under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against itself. The application was filed due to the company's inability to settle outstanding amounts with its creditors, severe financial stress, and the lack of viable business opportunities to recover from this financial distress. The Corporate Applicant experienced a decline in operations due to the rejection of Foreign Direct Investment (FDI) proposals and the impact of the COVID-19 pandemic. The company's shareholders passed a special resolution to initiate CIRP.

## Facts

Shandong Chunlong Group India Private Limited, the Corporate Applicant, 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 address is G-074, Site 5, Kasna Industrial Area, Greater Noida, Gautam Budh Nagar, Uttar Pradesh- 201308. The company was incorporated on 29.05.2017. The nominal Share Capital of the Company is Rs. 5,85,00,000/- and the Paid Share Capital is Rs. 5,83,17,500/-. The company is primarily engaged in manufacturing detergent powder. The company experienced financial difficulties due to the rejection of Foreign Direct Investment (FDI) proposals and the COVID-19 pandemic. The company has no financial creditors but has

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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 Adjudicating Authority examined the application and found it to be free from defects

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

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**Application:** In this case, the Corporate Applicant filed an application under Section 10,

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## Parties

- **Judges:** Praveen…; Ashish…
- **Respondents:** Shandong Chunlong…; Maniram Exports…

## Timeline

- **2017-05-29 — Incorporation of…**: The Corporate Applicant, Shandong Chunlong…
- **2017-05-29 — Contract/Agreement with…**: A contract/agreement was executed between the Corporate Applicant and Shandong Chunlong…

## 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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