# In the matter of Vijay Ram Traders Private Limited

> NCLT judgment dated 2024-12-09. Citation: TCN-2024-NCLT-00085. The case pertains to an application filed by Vijay Ram Traders Private Limited under Section 10…

- **Court:** NCLT
- **Order date:** 9 Dec 2024
- **Citation:** TCN-2024-NCLT-00085
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vijay-ram-traders-private-limited-099a8ee1

## Summary

### Background

The case pertains to an application filed by Vijay Ram Traders Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was filed due to the company's inability to meet its financial obligations to its creditors. The company, incorporated on 23.12.2011, acknowledged a default of Rs. 26,99,01,544/- to its Financial Creditors. The applicant also proposed Mr. K J Vinod as the IRP.

## Facts

Vijay Ram Traders Private Limited, the Corporate Applicant, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiation of CIRP. The company was incorporated on 23.12.2011. The Corporate Applicant acknowledged a default of Rs. 26,99,01,544/- to its Financial Creditors. The application included a proposal for Mr. K J Vinod to be appointed as the IRP. The company submitted various documents, including audited financial statements for the years ended 31.03.2022 and 31.03.2023, and a financial statement for the period from 01.04.2023 to 15.12.2023. The company also filed an Independent Auditor's Report along with an Audited Balance Sheet as on 31.03.2024. The company had entered into a Memorandum of Agreement with Raam Chandra Traders

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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 debtor to initiate CIRP if it has committed a

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**Reasoning:** The Tribunal considered the documents submitted by the Corporate Applicant and found that

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

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**Application:** The Tribunal found that the application filed by Vijay Ram Traders Private

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Vijay Ram Traders…

## Timeline

- **2011-12-23 — Incorporation of…**: Vijay Ram Traders Private…
- **2019-03-31 — Memorandum of…**: Memorandum of agreement made between the Corporate Applicant and Raam Chandra Traders Pvt…

## 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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