# In the matter of Sundha Road Developers Pvt. Ltd.

> NCLT judgment dated 2024-01-31. Citation: TCN-2024-NCLT-02835. M/s Sundha Road Developers Pvt. Ltd. filed an application under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jan 2024
- **Citation:** TCN-2024-NCLT-02835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sundha-road-developers-pvt-ltd-0c32bcf5

## Summary

### Background

M/s Sundha Road Developers Pvt. Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company, incorporated in 2011, faced financial difficulties due to the COVID-19 pandemic in March 2020, leading to significant business losses and a halt in operations. The company's board of directors resolved to initiate CIRP after considering its financial position as of March 31, 2023, and the defaults it had committed.

## Facts

M/s Sundha Road Developers Pvt. Ltd., the Corporate Debtor, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP). The company, incorporated on March 23, 2011, with CIN U45201RJ2011PTC034629, has its registered office in Jodhpur. The company's main object is building and construction. The company faced financial difficulties due to the COVID-19 pandemic in March 2020, leading to significant business losses and a halt in operations. The company defaulted on debt payments to financial and operational creditors. Khush Infratech Pvt. Ltd. is a financial creditor with a claim of Rs. 24,53,81,278. Sara Global, Texon International, and Krishna Stone Crusher & Suppliers are other

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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(4)(a) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The court found that the application was complete, as it contained all the necessary

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Respondents:** M/S SUNDHA ROAD…; KHUSH INFRA PVT.…
- **Advocates:** Umang G…; Aditi Khan…; +2 more

## Timeline

- **2011-03-23 — Company Incor…**: M/s Sundha Road Developers…
- **2020-03-01 — Business Losses due to…**: The Company suffered huge…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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