# In the matter of Ways Estates Limited C.P. (I.B) No. 259-KB-2021

> NCLT judgment dated 2022-06-30. Citation: TCN-2022-NCLT-01970. The case pertains to an application filed by Ways Estates Limited under Section 10 of the…

- **Court:** NCLT
- **Order date:** 30 Jun 2022
- **Citation:** TCN-2022-NCLT-01970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ways-estates-limited-cp-ib-no-259-kb-2021-69f3d400

## Summary

### Background

The case pertains to an application filed by Ways Estates Limited 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 through its Director, Mr. Abhay Raj, authorized by a Board Resolution dated 29 July 2021. Ways Estates Limited, incorporated on 31 December 2010, is engaged in the real estate business and development of agricultural land. The company defaulted in payment to Mr. Shivpujan Ray on 11 March 2019, who subsequently sent a demand notice on 17 June 2021.

## Facts

Ways Estates Limited, a company incorporated on 31 December 2010, engaged in real estate and agricultural land development, filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating CIRP against itself. The application was filed through its Director, Mr. Abhay Raj, authorized by a Board Resolution dated 29 July 2021. The company defaulted in payment to Mr. Shivpujan Ray on 11 March 2019, leading to a demand notice on 17 June 2021. The total debt owed to the Financial Creditors amounted to Rs.2,44,55,359/-. The members of the Corporate Applicant consented to the filing of the application through a resolution passed in an Extraordinary General Meeting held on 23 August 2021. The Corporate Applicant has a customer base of 3922

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## Issues and analysis

### Issue 1: Whether the application filed by Ways Estates Limited 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 considered the application, the documents submitted by the

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

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**Application:** The Adjudicating Authority found that the Corporate Applicant had complied with

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** Ways Estates…
- **Advocates:** Manju Bhu…; Rahul Parasrampuri…; +1 more

## Timeline

- **2010-12-31 — Incorporation of…**: Ways Estates Limited…
- **2019-03-11 — Default in…**: The Corporate Applicant defaulted…

## Legal provisions

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

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